Markets extend gains; Nifty above 8,550

Banking shares were the top gainers after the demonetisation move by the government

Benchmark indices edged higher in late morning trades with bank shares leading the gains following the demonetisation move by the government.

At 10.40 am, the S&P BSE Sensex rose 388 points at 27,641 while Nifty50 was up 131 points at 8,563. In broader markets, BSE Midcap and Smallcap indices were up more than 2% each.

The rise in indices were supported by gains in metal, realty, banking, oil & gas and healthcare sectors.

Jindal Steel was the top gainer on BSE Metals index with a rise of 8.48%. All stocks in the index was trading in green.

Banking sector extended gains to rise over 2% with SBI up 5.26% and ICICI Bank rising 4%post government’s announcement of demonetising Rs 500 and Rs 1,000 notes.

Tata Group stocks surged as TCS gets a new interim chairman Ishaat Hussain.

While Tata Steel rose 8%, TCS and Tata Motors also saw more than 1.5% gain.

However, after a 10% fall yesterday the realty sector rebounded today rising 4% with DLF gaining more than 9%.

Cipla gained 6.44% even after the company posted a drop in net profit for the September quarter.
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(Updated at 9:20am)

Benchmark share indices surged in early trades on Thursday amid a rebound in global markets after President-elect Donald Trump in his victory address promised fiscal stimulus and infrastructure spending to boost growth in the world's largest economy.

At 9:20am, the S&P BSE Sensex was trading 300 points higher at 27,552, while the broader Nifty50 gained 103 points to quote 8,535.

“Nifty has to cross and hold above 8480 zones to witness follow up bounce back move towards 8550 and 8620 zones. On the downside it has support near to 8350 and below that selling pressure may drag it towards 8200 zones” said brokerage Anand Rathi in a technical note.

Tata Steel was the top Sensex gainer up over 5% amid reports that the steel major might be planning to close down the pension scheme at its UK steel business. Meanwhile, the company will announce its second quarter earnings on Friday.

TCS shares also rose over 1% after the IT major announced that Ishaat Hussain will replace Cyrus Mistry as TCS board Chairman for interim period. 

Meanwhile, the speed of the reversal left some market watchers scratching their heads after Trump win.

"Donald Trump winning the US Presidential elections could be a mixed bag for India. On the one hand, India could get impacted by the ripples caused by the (much feared) policies sought to be implemented by Trump. On the other hand, India could grow as an important ally for US going by his views on China and Middle East," said  Mr Dhiraj Relli, MD & CEO, HDFC Securities.

On Thursday, foreign institutional investors turned sellers with net equity sell value of Rs 2,095 crore, while domestic institutional investors bought equities worth Rs 1,116.31 crore, provisional data available with BSE suggested.

Global Markets

Among Asian markets, the Nikkei duly recouped all of Wednesday's 5% loss and more to trade up roughly 6% as the yen weakened following the previous session's surge.
 

MSCI's broadest index of Asia-Pacific shares outside Japan bounced 1.7% after dropping 2.4% on Wednesday as global markets plunged as Trump swept to power.
 

Australian stocks soared 3% in the largest daily gain since late 2011 and Shanghai rose 1%.

Overnight, US stocks rose sharply in a dramatic turnaround from the previous session as Wall Street embraced the upset presidential election victory of Republican Donald Trump.

With Reuters input