Late buying lifts Sensex, exit polls take centre stage

Stocks summoned courage and left early losses behind with a gain of 194 points at close on Thursday, as investors shifted their attention to exit poll results of Gujarat Assembly elections.

The NSE Nifty went above the 10,250-mark on some end-moment buying.

The 30-share BSE Sensex bounced back in the last one hour of the session to hit a high of 33,321.52 before closing up 193.66 points — or 0.59 per cent — at 33,246.70.

The gauge had lost 402.75 points in the previous two sessions disappointed by grim economic data and the ADB lowering India’s economic growth forecast.

The 50-issue NSE Nifty in range-bound movements settled higher by 59.15 points, or 0.58 per cent, at 10,252.10.

Intra-day, it shuttled between 10,276.10 and 10,141.55.

A rise in wholesale inflation, which accelerated further to 3.93 per cent in November, injected a sense of caution though.

As expected, Janet Yellen, in her final act as the US Fed chair, raised rates to a range of 1.25 per cent to 1.5 per cent, citing solid US job growth and household spending. The central bank kept its policy outlook on additional increases for 2018 and 2019 unchanged. An appreciating rupee against US dollar created positive atmospherics for the stock upmove.

“VIX (volatility index) touched the 17 mark for the first time since February, hinting at the indecision ahead of Gujarat election results and the outcome of Parliament’s winter session starting tomorrow (Friday),” said Anand James, chief market strategist, Geojit Financial Services.