Domestic stocks advanced for a second day, buoyed by BJP-led NDA's re-election and global optimism. The Nifty climbed above 22,800 despite some profit-taking in FMCG and pharma. Realty, banks, and media stocks led the rally. All eyes are now on the RBI policy decision tomorrow, with analysts expecting rates to stay on hold, but watching closely for the central bank's comments on liquidity.
In the barometer index, the S&P BSE Sensex gained 692.27 points or 0.93% to 75,074.51. The Nifty 50 index jumped 201.05 points or 0.89% to 22,821.40.
SBI (up 3.46%), Infosys (up 2.95%) and Larsen & Toubro (up 2.24%) boosted the indices.
The broader market outperformed the headline indices. The S&P BSE Mid-Cap index jumped 2.28% and the S&P BSE Small-Cap index rallied 3.06%.
The market breadth was strong. On the BSE, 3009 shares rose and 834 shares fell. A total of 102 shares were unchanged.
The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, dropped 11.04% to 16.80.
The BJP-led National Democratic Alliance (NDA) will establish the new government on Saturday, when Narendra Modi will be inaugurated as Prime Minister for a historic third consecutive term. The BJP has obtained written support from the leaders of the Telugu Desam Party (TDP) and Janata Dal (United) (JD-U).
Numbers to Track:
The yield on India's 10-year benchmark federal paper shed 0.14% to 7.016 as compared with previous close 7.014.
In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 83.5000, compared with its close of 83.4450 during the previous trading session.
MCX Gold futures for 5 August 2024 settlement was up 0.39% to Rs 72,803.
The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was down 0.04% to 104.23.
The United States 10-year bond yield added 0.09% to 4.289.
In the commodities market, Brent crude for August 2024 settlement added 26 cents or 0.33% to $78.67 a barrel.
Global Markets:
European and Asian stocks advanced on Thursday, buoyed by growing optimism for lower interest rates globally. The positive sentiment mirrored record highs on Wall Street's S&P 500 and NASDAQ, fueled in part by weak US labor data. This data rekindled expectations of a Federal Reserve rate cut by September.
The US Labor Department said job openings fell to 8.059 million in April, the lowest since 2021, from a downwardly revised 8.355 million in March.
Further fueling the rally were Wednesday's interest rate reduction by the Bank of Canada and anticipation of a similar move by the European Central Bank later that day. This confluence of events fueled hopes for a global decrease in borrowing costs.
Chip-related stocks climbed after market leader NVIDIA surged to a $3 trillion valuation on Wednesday, riding the wave of artificial intelligence (AI) enthusiasm. Positive comments from ASML Holding NV, the world's top manufacturer of semiconductor equipment, further bolstered investor confidence in the chipmaking sector. The market anticipates that rising AI demand will translate into a global surge for semiconductors.
Stocks in Spotlight:
Zee Entertainment Enterprises jumped 4.3% after board approves fundraising up to Rs 2000 crore. This will fuel growth in the evolving media landscape.
Wipro gained 2% on bagging $500-million contract from a leading US communication service provider. The IT major will provide managed Services for some products and industry specific solutions over a period of 5 years.
Indian Energy Exchange (IEX) advanced 3.50% after the company informed that it has achieved 10,633 million units (MU) overall volume in May 2024, registering a growth of 28.9% YoY basis.
Rail Vikas Nigam jumped 4.39% after the company said that it has received letter of acceptance (LoA) from Eastern Railway for a project worth Rs 390.97 crore.
Bharat Heavy Electricals (BHEL) surged 8.97% after it received orders from Adani Power and its subsidiary, Mirzapur Thermal Energy, aggregating to over Rs 7,000 crore.
Century Textiles & Industries soared 14.65% after the companys wholly owned subsidiary, Birla Estates has entered into a joint venture (JV) with Barmalt India for a luxury residential group housing development in Gurugram, Delhi.
Indoco Remedies added 1.86% after the company has received tentative approval from the US Food and Drug administration (USFDA) for its abbreviated new drug application (ANDA) for canagliflozin and metformin tablets.
Orchid Pharma rallied 6.37% after the company said that it has received an approval from Drugs Controller General of India (DCGI) to manufacture and market its new chemical entity active pharmaceutical ingredient (API), Enmetazobactam.
Kalpataru Projects International jumped 7.31% after the civil construction company announced that the executive committee of its board is scheduled to meet on 10 June 2024 to consider the proposal of fund raising.
KPI Green Energy hit an upper circuit of 5% after the companys wholly owned subsidiary, Sun Drops Energia has received solar power project from various companies under Captive Power Producer (CPP).
Sun Pharma Advanced Research Company (SPARC) gained 4.71% after the company announced that Chetan Rajpara, chief finanacial officer (CFO) of the company has tendered his resignation effective from 5 June 2024.
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