Indian markets trade on a positive note during Thursday’s session amid broad-based buying and bullish trends in global cues after China stepped in to soothe market nerves and also the US Federal Reserve’s hinted about moving very gradually toward tapering stimulus.
IT and metal stocks outperformed, while banking and consumer durables stocks further contributed to the winnings. The performance in benchmarks Sensex and Nifty is expected to have more intraday swings as the expiry of derivative contracts will see volatility with midcaps seeing more action as results beat estimates.
Asian indices rallied with Hong Kong’s Hang Seng index skyrocketing by more than 680 points. China’s Shanghai Composite jumped by 1%, while Japan’s Nikkei 225 surged by 0.6%. Other markets trading higher as well.
In the latest policy, the US Federal Reserve kept its benchmark interest rate unchanged at the record-low level of near-zero amid growing concerns over surging inflation and the rapid spread of the Delta variant. The Fed has stated that it is committed to using its full range of tools to support the U.S. economy in this challenging time, thereby promoting its maximum employment and price stability goals.
Notably, the Chinese and Hong Kong markets see the worst ever fall in over 3 years, the indices lose over 13% in 3 sessions. However, Chinese and Hong Kong shares are expected to have a breather from their steep sell-off as reports have stated that regulators have called banks overnight for easing market fears that grappled around stricter rules on the education sector.
Tracking positive cues, Sensex has touched an intraday high of 52,708.72 and Nifty 50 has climbed to the day’s high of 15,785.90 in the early deals of the opening bell.
At around 09.50 AM, Sensex was performing at 52,631.14 higher by 187.43 points or 0.36%. Nifty 50 performed at 15,762.35 up by 52.95 points or 0.34%.
In terms of sectoral indices, BSE Metal jumped by 260 points, while BSE Consumer Durables and BSE Capital Goods climbed 270 points each. BSE IT soared over 240 points.
Top bulls on Sensex were – HCL Tech surging 2%, while Titan, Tata Steel and Tech Mahindra advanced by more than 1% each. Other heavyweights like M&M, TCS, Bajaj Finance, RIL, Infosys, HDFC Bank, SBI, Bharti Airtel and Bajaj Finserv zoomed between 0.5-1%.
Top bears on Sensex were – Maruti Suzuki diving by 2.5%, while Power Grid followed with a little over 1% plunge. Nestle, Bajaj Auto and HDFC tumbled by 0.5% each.
Companies that will be in focus today ahead of its June 2021 quarter results are – Tech Mahindra, Colgate-Palmolive (India), AAVAS Financiers, ADF Foods, Aegis Logistics, Ajanta Pharma, CCL Products, Container Corporation of India, Dhanuka Agritech, Dwarikesh Sugar Industries, Eris Lifesciences, Future Retail, GHCL, Home First Finance Company India, Indus Towers, JK Lakshmi Cement, Jindal Stainless (Hisar), Jyothy Labs, Laurus Labs, LIC Housing Finance, Mahindra Holidays & Resorts India, Motilal Oswal Financial Services, Oberoi Realty, Parag Milk Foods, Punjab & Sind Bank, PVR, Raymond, Shoppers Stop, Shriram City Union Finance, TVS Motor Company, Union Bank of India, Vaibhav Global, and Welspun Corp.