Sensex extends gains to third straight day as metal stocks shine; banks see profit-booking

NEW DELHI: Benchmark indices wiped off most of their intraday gains on Thursday to close higher thanks to the dovish stance of the Reserve Bank of India and the Federal Reserve amid firm global cues.

Dalal Street continued its optimistic rally supported by the central bank's dovish monetary policy though it witnessed consolidation in the second half of the session due to selling pressure in banking stocks. Traders will keep an eye out on developments on the Covid-19 front to assess the near-term trend.

The 30-share pack Sensex added 84.45 points or 0.17 per cent to close at 49,746.21. The index traded in a range of 536.47points during the day. Its broader peer NSE Nifty rose 54.75 points or 0.37 per cent to settle at 14,873.80.


“Metal stocks led the sectorial rally on a strong outlook supported by rising steel prices and production. The Q4 earnings season has started and the market is expected to have a stock-centric rally in the coming days," said Vinod Nair, Head of Research at Geojit Financial Services.

Markets at glance

• Steelmakers surge on price hike; JSW Steel rallies 10%
• Titan surges 4% after Q4 business update; analysts project 100% jump
• Cement makers also see buying as Street expects price hikes
• Bank stocks see profit booking after initial gains
• Smallcap stocks in heavy demand, Nifty Smallcap climbs 1.2%

Among the bluechip stocks, JSW Steel was the top gainer for another day, rising 9.59 per cent. Tata Steel, Shree Cement, UltraTech Cement, Hindalco, Titan Company and Tech Mahindra were other gainers.

Sun Pharma was the top loser in the Nifty pack, falling 1.14 per cent. IndusInd Bank, SBI Life Insurance, ONGC, Bajaj Finance, Bajaj Auto, Power Grid and HDFC Bank were other stocks that ended in the red.

Broader market indices ended with gains, outperforming their headline peers. Nifty Smallcap added 1.24 per cent and Nifty Midcap advanced 0.53 per cent. Nifty 500 -- the broadest index on NSE -- gained 0.48 per cent.

Dhani Services, Jindal Steel, Steel Authority of India, Sterling and Wilson Solar, Just Dial and India Cements were top gainers from the mid- and small-cap indices, climbing in the range of 6-10 per cent.

Cholamandalam Investment and Finance, Amara Raja Batteries, Vodafone Idea, Edelweiss Financial Services, Future Retail and UTI AMC were major losers from the broader market space, falling in the range of 1-9 per cent.

The sectoral matrix was mixed on NSE. Nifty Steel was the biggest gainer, up 3.92 per cent. Nifty IT followed, with a 1.18 per cent rise. Nifty Realty and Nifty Media were other major gainers.

Nifty PSU Bank and Nifty Private Bank were among the top losers.

Market breadth was in favour of gainers as 1,857 stocks ended in the green, while 1,061 counters settled with cuts. As many as 223 securities hit 52-week highs, mostly from the small-cap space. Meanwhile, 36 scrips hit 52-week lows, mostly from the micro-cap space. About 325 stocks hit upper circuit limits and 177 lower circuit limits.

European markets were trading higher at the last count. London-based FTSE was up 2.91 per cent while Paris and Frankfurt added 0.91 per cent and 0.39 per cent, respectively. In Asia, Japan, Singapore, Thailand and China closed with cuts while the rest ended the day with gains.