The domestic bourses continued their gaining streak for the third straight session on Thursday as investors' cheered state assembly election results, while retreat in commodity prices also lifted market sentiments. The crude price dropped more than 12% overnight amid hopes of a positive outcome in Ukraine-Russia talks which is underway in Turkey as war between two nations enter third week.
“Hopes of progress in high-level talks between Russia & Ukraine and a surge in the Asian market, the Indian market started with a strong gap-up. The outperformance was supported by positive state election results being in line with expectations. However, a weak western market ahead of ECB & US CPI data and rise in crude prices added volatility in between,” says Vinod Nair, Head of Research at Geojit Financial Services.
Early today, the BSE Sensex opened higher and gained 1,595 points to hit an intraday high of 56,242, and the NSE Nifty rose 412 points to touch day’s high of 16,757 levels. Reversing some of early gains, the 30-share Sensex closed 817 points, or 1.5%, higher at 55,464, and the Nifty50, settled at 16,595, up 249 points or 1.5%.
The broader market also witnessed solid buying with the BSE midcap and smallcap indices gaining 1.06% and 1.18%, respectively.
The overall market breadth on the BSE was strong, with 2,550 shares advancing of a total of 3,749 traded stocks. As many as 1,072 shares declined and 127 were unchanged.
All sectors end in green
The domestic equities saw broad-based buying today with all sectors closing in the green zone, led by FMCG and realty index. The BSE FMCG index was the best performer with a 2.68% gain, supported by a rally in Radico Khaitan, DCM Shriram Industries, Procter & Gamble Hygiene & Healthcare, Hindustan Unilever Ltd., and BCL Industries shares.
The BSE realty index also topped the gainer's chart by rising 2.16%. The best performers in the real estate space were DLF, Phoenix Mills, Prestige Estates Projects, Oberoi Realty, and Godrej Industries, which rose up to 4.3%.
Top gainers and losers
FMCG major Hindustan Unilever Ltd (HUL) emerged as the best performer on the BSE Sensex pack with a 5.17% gain. The HUL shares rallied after the company unveiled a change in its management committee and announced the appointment of two key executives.
The other top gainers include Tata Steel, State Bank of India, IndusInd Bank, and Axis Bank, which climbed up to 4.3% on the BSE.
On the losing side, IT major Tech Mahindra topped the chart by falling 1.28%. Drug maker Dr. Reddy's Laboratories dropped 0.78%, while Tata Consultancy Services, the country’s largest software exporter, slipped 0.36%.
Asian markets rise as oil prices ease, European stocks skid
Shares in the Asia-Pacific region closed mostly higher today following strong cues from Wall Street, while European stocks reeled under pressure in early deals amid concerns about the ongoing Russia-Ukraine conflict.
In the Asia-Pacific region, Japan’s benchmark index Nikkei 225 gained the most, closing 3.94% higher following overnight declines in crude prices. South Korea’s KOSPI jumped 2.2% and the Hang Seng index in Hong Kong climbed 1.3%.
In a similar fashion, the Straits Times Index in Singapore surged 1.4%, Taiwan Weighted index rallied 2.46%, Australia’s ASX 200 index added 1.1%, and Thailand’s SET Composite rose 0.2%.
In mainland China, the Shenzhen component surged 2.2%, while the Shanghai Composite gained 1.2%.
Meanwhile, European markets tumbled in opening trade despite the ease in commodity prices as concerns about the ongoing Russia-Ukraine conflict dented sentiments. Reversing two sessions gaining streak, Germany’s DAX dropped 1.35% and the U.K.’s FTSE 100 index slipped 0.75% in early deals. France’s CAC index dived 1.2%, while Spain’s IBEX 35 traded flat.
