Equity indices closed higher for the second straight session on Thursday, led by metal, pharma and banking stocks amid widespread buying by foreign and domestic institutional investors.
Global markets were mixed following release of Federal Reserve minutes which showed that the US central bank would be patient on interest rate hikes.
After a choppy start, the 30-share BSE Sensex settled 142.09 points, or 0.40% higher at 35,898.35. The broader NSE Nifty gained 54.40 points, or 0.5%, to 10,789.85.
Tata Motors was the biggest gainer in the Sensex pack, rallying 2.94%. It was followed by Vedanta, Bajaj Finance, Sun Pharma, ONGC, ICICI Bank, Bajaj Auto, Tata Steel, RIL, HDFC duo, L&T and SBI, rising up to 2.78%.
On the other hand, Yes Bank, Coal India, Infosys, IndusInd Bank, Kotak Bank, Axis Bank, ITC and TCS slipped up to 1.33%.
Shares of public sector banks (PSBs) jumped up to 19% after the government on Wednesday announced fund infusion of Rs 48,239 crore in 12 such lenders.
Corporation Bank zoomed 19.02%, UCO Bank 8.75%, United Bank 7.19%, Central Bank of India 5.50%, Allahabad Bank 5.34%, Andhra Bank jumped 5.22%, Bank of Maharashtra 3.96%, Syndicate Bank 3.59%, and Punjab National Bank ended 2.95% higher.
Sectorally, the BSE metal index, consumer durables, healthcare, finance and bankex rose up to 1.14%, while IT and teck indices ended with losses.
Broader indices outperformed the benchmark. The BSE Midcap index climbed 0.88% while the small-cap gauge rose 1.07%.
“Market extended gains as investor sentiment has been boosted owing to recapitalisation of PSU banks and Fed’s affirmation of slow pace in rate hikes.
“Accumulation is seen on heavyweights after recent fall while mid and small cap outperformed. Undercurrent in the market is yet to stabilise due to caution on global trade and growth while falling interest rates and reforms by government will give impetus to consumption-led stocks,” said Vinod Nair, head of research, Geojit Financial Services.
Foreign institutional investors (FIIs), who had been heavy sellers over the past few sessions, net bought equities worth Rs 713.47 crore on Wednesday while domestic institutional investors bought shares to the tune of Rs 113.27 crore, provisional data showed.
Elsewhere in Asia, Hong Kong’s Hang Seng rose 0.41% and Japan’s Nikkei ended 0.15% higher; while Shanghai Composite Index shed 0.34% and Korea’s Kospi slipped 0.04%.
In the Eurozone, Frankfurt’s DAX was up 0.28%, Paris CAC 40 fell 0.06% and London’s FTSE was down 0.63% in early deals.
The benchmark Brent crude futures fell 0.12% to USD 67 per barrel.
Meanwhile, the rupee depreciated marginally to 71.14 against the US dollar intra-day.