 "Bombay Stock Exchange, Stock market, BSE")
Taking cues from an overnight rally in the US market, the domestic benchmark indices posted strong gains for a second day in a row on Thursday. In intraday trade, the S&P BSE Sensex rose nearly 1,200 points, or 1.63 per cent, to reclaim the 74,000 mark after two years. However, the index gave up some gains as investors took profits off the table on the last trading day of 2023-24.
The expiry of derivatives contracts also added to the volatility. The Sensex ended the session at 73,651, with a gain of 655 points, or 0.9 per cent, while the National Stock Exchange Nifty 50 rose 203 points, or 0.9 per cent, to end the session at 22,327.
The key indices are now less than a percentage away from their all-time highs after adding 2.3 per cent in the past six trading sessions, during which they ended with losses only once.
However, the broad market indices continue to trail the largecap benchmarks. While the Nifty Smallcap 100 closed flat, the Nifty Midcap 100 ended with a 0.5 per cent gain.
According to analysts, apart from global cues, the relaxation in alternative investment fund investment by the Reserve Bank of India lifted sentiment.
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Bajaj Finserv and Bajaj Finance were the biggest gainers in the Sensex pack, rising over 3 per cent. Grasim Industries, Hero MotoCorp, Eicher Motors, State Bank of India, and Mahindra & Mahindra were the other top gainers in Sensex and Nifty 50. Overall market breadth was mixed, with 1,793 stocks advancing and 2,042 declining on the BSE.
“Global stocks hit fresh records heading into the long Easter weekend break as equities headed for a second quarterly gain. Markets were mostly up ahead of Friday's much-anticipated US core personal consumption expenditures price index data, the US Federal Reserve’s (Fed’s) preferred measure of inflation. Investors now expect the rally to broaden beyond the biggest companies on optimism about interest rate cuts and economic growth,” said Deepak Jasani, head of retail research, HDFC Securities.
Market players said the selling pressure is generally lower in the last week of March as investors book losses early in March to save on taxes. Analysts say that in the coming week, market movement will be dictated by the US data, and largecap stocks will most likely remain in momentum.
“Markets on Monday will react to global cues as the US will announce fourth quarter gross domestic product GDP and core personal consumption expenditure price data. Also, Fed Chair Jerome Powell’s speech, scheduled for Friday, will be important from an interest rate perspective. Overall, we expect the market to continue its positive momentum with a focus on largecap. With the start of the election in April, we believe government-centric stocks will be in focus. Automotive stocks are likely to be in the limelight next week amid the release of monthly automotive sales numbers,” said Siddhartha Khemka, head of retail research at Motilal Oswal Financial Services.
