Sensex surges 385 points, crosses 66K mark on gains in L&T, bank stocks

Despite negative global sentiment, Indian equity indices defied early losses to extend their winning streak for the fifth consecutive session on Thursday, led mainly by gains in Larsen & Toubro and also banking, financial and IT stocks.

The 30-share BSE benchmark Sensex advanced 385 points or 0.58% to settle at 66,265. The broader NSE Nifty surged 116 points or 0.59% to end at 19,727.

From the Sensex pack, L&T and IndusInd Bank were the top gainers, rising 4% and 2%, respectively. SBI, Tech Mahindra, HCL Tech, Power Grid, and NTPC also closed higher.


On the flip side, Sun Pharma, Infosys, M&M, UltraTech Cement, and HUL ended with losses.

Among individual stocks, Zomato shares closed 2% higher following reports that 12 lakh equity shares of the food delivery platform changed hands in a block deal. Shares of Force Motors closed with a 5% upper circuit after the firm reported strong August month sales data.

Among individual stocks, Zomato shares closed 2% higher following reports that 12 lakh equity shares of the food delivery platform changed hands in a block deal. Shares of Force Motors closed with a 5% upper circuit after the firm reported strong August month sales data.

From the sectoral front, Nifty Bank rose 1.06%, and Nifty Financial Services surged 1.02%. Auto, IT, media, realty, consumer durables, and oil & gas sectors also closed higher.

In the broader market, Nifty Midcap100 hit a 52-week high and ended 0.77% higher, led by IRFC, PFC, and Devyani International. Meanwhile, Smallcap100 also hit a 52-week high and closed 0.47% higher, led by Cochin Shipyard and Mazgon Dock.

The market capitalisation of all listed companies on BSE increased by Rs 1.77 lakh crore to Rs 319.1 lakh crore. The market breadth was skewed in favour of the bulls. About 2,238 stocks gained, 1,441 declined, and 128 remained unchanged on the BSE.

Expert Views
"The domestic market initially opened with a lackluster performance, influenced by weak global cues. However, as the day progressed, a decline in US bond yields and crude oil prices injected some positivity into the market," said Vinod Nair, Head of Research at Geojit Financial Services.

"Interestingly, mid and smallcap stocks managed to retain investor interest even though their valuations are relatively high. Nonetheless, the persistently weak trade data from China continues to cast a shadow over the global market's outlook," Nair added.

Aditya Gaggar, Director of Progressive Shares, said, "By forming a strong bullish candle on the daily chart, the index has breached its stiff resistance of 19,640 and extending the current up-move, the next resistance comes at 19,870 while support stands at 19,640."

Global Markets
World stocks slid for a third straight day on Thursday and were choppy in Europe, as new signs of sustained inflationary pressures in the US and rising energy prices globally boosted the case for higher-for-longer interest rates.

Hong Kong's Hang Seng and an index of mainland Chinese blue chips each dropped around 1.3%. Australia's benchmark lost 1.2% while Japan's Nikkei fell 0.75%, which snapped an eight-session winning streak.

US stock futures pointed to a 0.2% decline after a 0.7% slide for the S&P 500 overnight.

Oil Falls
Oil prices eased on Thursday as worries over demand due to a seasonal slowdown during winter and an uncertain economic outlook for China outweighed expectations of tighter supplies from extended production cuts in Saudi Arabia and Russia.

Brent crude futures fell 41 cents to $90.19 a barrel, after a nine-session winning streak. US West Texas Intermediate crude (WTI) futures fell 52 cents to $87.02 a barrel after seven sessions of gains.

Rupee Weakens
The Indian rupee weakened 0.10% versus the US dollar and was quoted at 83.21 per dollar, despite likely dollar-selling intervention from the Reserve Bank of India (RBI) as elevated US treasury yields and weakness in other Asian currencies weighed on the local unit.

(With inputs from agencies)