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Sensex Goes Down 652 Pts, Nifty Snaps Winning Streak

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At close on Friday, the Sensex was down 651.85 points or 1.08 per cent at 59,646.15 while its broader peer the Nifty was down 198 points or 1.10 per cent at 17,758.50

Indian benchmark indices snapped their 8-day winning streak and ended in red at close on Friday. The fall is mainly attributed to some profit booking witnessed during the trade and some other global macroeconomic headwinds.

At close, the Sensex was down 651.85 points or 1.08 per cent at 59,646.15 while its broader peer the Nifty was down 198 points or 1.10 per cent at 17,758.50.mExcept capital goods and Power all major sectoral indices ended in red. On the Nifty, Adani Ports, L&T, Infosys, Eicher Motors and Bajaj Auto were among top gainers. IndusInd Bank, Apollo Hospitals, Bajaj Finserv, Tata Motors and Hindalco Industries were among top losers.

“Interest rate sensitives such as banking, auto & realty stocks witnessed heavy profit-taking and halted benchmark indices’ 7-day winning streak. Investors pressed the sell button after the recent US FOMC minutes indicated that the Federal Reserve may go for rate hikes in its next meeting, which prompted local investors to prune their holdings after the recent run-up,” said Amol Athawale, Deputy Vice President – Technical Research, Kotak Securities

A key macroeconomic factor that took the bulls by surprise was the resurgence in the US dollar index. The US Dollar index surged to a one-month high of 107.6 against a basket of major currencies amid comments by US Federal Reserve members that did little to support market’s optimism for slower interest rate hikes going ahead.  A strong dollar is negative for emerging market equities like India as it triggers capital outflows.

Also, heavy selling was witnessed in Reliance Industries’ shares as late on Thursday the government hiked the windfall tax on the export of diesel to Rs 7 per litre and brought back duty on export of jet fuel. A few banking names also saw selling including ICICI Bank, HDFC Bank, SBI, IndusInd Bank. Bajaj Twins – Bajaj Finserv and Bajaj Finance also slid over 2 per cent each.

“Technically, the Nifty witnessed profit booking near 18000 level, while on daily charts, the index has formed a long bearish candle and also broke the important support level of 17850 which is broadly negative. In addition, it has also formed Hammer candlestick formation indicating further weakness in the near future,” said Athawale. The selling on Friday was seen when the Nifty50 was around the 18,000 level, suggesting traders were jittery near the key mark.

“Below 17900, the correction formation is likely to continue and could retest the level of 17600-17500. On the flip side, 17900 – 17950 would act as an immediate hurdle for the bulls. A fresh uptrend is possible only if the index clears the resistance of 17950, which could then take it further to 18050-18150 level,” added Athawale.

economy

D-Street Remains Cautious Ahead Of Fed Rate Hike

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The NSE Nifty 50 index lost 0.88 per cent to 16,483.85, with a similar drop in S&P BSE Sensex to 55,268.49

Indian shares closed lower on Tuesday, with technology stocks bearing the brunt as investors turned wary of a likely sharp hike in U.S interest rate this week. The NSE Nifty 50 index lost 0.88 per cent to 16,483.85, with a similar drop in S&P BSE Sensex to 55,268.49. “While global growth has clearly entered a slower lane, including rising fears of U.S. recession, we look at several early anecdotes indicating possible worsening of domestic demand outlook,” BofA Securities said in a note released Tuesday. There are several emerging risks, including slowing growth, adverse policy interventions, FX depreciation and rising rates, BofA said, adding that earnings cuts were “imminent”.

“Benchmarks ended on a nervous note a day before the Fed announces its interest rate decision. Profit-booking continued to be the order of the day as investors preferred to remain on the sidelines ahead of the FOMC interest rate decision to trickle in tomorrow. The street suspects that the Federal Reserve will be hiking rates again by another 75bps,” said Prashanth Tapse – Research Analyst, Senior VP (Research), Mehta Equities.

While Asian shares gained on new Chinese plans to tackle its property crisis, Europe was subdued ahead of a likely 75 basis points Federal Reserve interest rate increase on Wednesday amid mounting worries of a gas crunch. In India,equities received a net USD 52.95 million of inflows this month, up to Monday, after heavy foreign outflows every month since November. For the month so far, the Nifty and the Sensex are up about 4.5 per cent each. Private lender Axis Bank slid 2.9 per cent on its worst day since mid-May despite a beat on quarterly profit, as analysts flagged soft loan growth.

The Nifty IT index slid 2.8 per cent and was the worst performer among sub-indexes, with IT major Infosys dropping 3.5 per cent. “Technically, on intraday charts, the Nifty has maintained a lower top formation and also formed a bearish candle on daily charts, which suggests further correction from the current levels. For traders, 16600 would act as an immediate resistance level and below the same, the correction wave is likely to continue till 16400-16350. A fresh uptrend rally is possible only after the 16600 breakout. Above which, the index could retest the level of 16700-16735,” said Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities 

Food delivery firm Zomato tumbled 12.5 per cent to a record low, fintech firm Paytm slid 7.8 per cent, while online insurance platform PB Fintech dropped 4.1 per cent. Software company Ramco Systems plunged 11.1 per cent after the company said its quarterly loss widened. Financial services provider Bajaj Finserv cushioned some losses on the Nifty 50, adding 5.5 per cent,after announcing plans to issue bonus shares and split stock.

(With Reuters Inputs)

household

Banking Stocks Rally On Rising Rates

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While the BSE Bank index has risen by 5 per cent since the beginning of 2022, as against a decline of nearly 4 per cent in the BSE benchmark Sensex

Helped by rising interest rates, expanding retail loan book and improved credit quality, many banking stocks have outperformed broader market indices this year and experts are hopeful of a continuing rally as long as there are no major macroeconomic headwinds. While the BSE Bank index has risen by 5 per cent since the beginning of 2022, as against a decline of nearly 4 per cent in the BSE benchmark Sensex, some key banking stocks like Bank of Baroda have rallied by 30-40 per cent in the same period, as per the stock exchange data.

Analysts said the banking space is known as a ‘mother sector’ as a better performance by banks indicates better days for the economy, but the banking sector is hit hard when the economy does badly. With the NPA (non-performing assets) scenario having improved and not many cases of major bad loans emerging after a large-scale deleveraging exercise carried out by corporate borrowers, there are few indications that the things can go bad for the sector as is being seen in quarterly results of most banks, experts said.

Ajit Kabi, Banking Analyst at LKP Securities, said some banks have performed significantly well, factoring the rising interest rate scenario. “ICICI Bank, Bank of Baroda and SBI have performed on expected lines. However, HDFC Bank has underperformed because of merger and margins woes,” he said. Bank of Baroda has zoomed nearly 42 per cent in 2022 so far, Federal Bank by 29 per cent and Karur Vysya Bank has climbed 18 per cent.

“Banks have done reasonably well in 2022. But we also must understand that there has been a divergence within the banking sector. While, on one hand, banks such as Federal Bank were exceptional performers, others such as RBL Bank, have struggled to get investors’ attention. So was the case with IDFC First Bank and India’s most valuable bank — HDFC Bank,” said Sunil Damania, Chief Investment Officer, MarketsMojo, a stock advisory and research platform.

He said all these three banks (RBL Bank, IDFC First Bank and HDFC Bank) are below the level they were quoting at the end of 2021. “So, while the Nifty Bank index has done reasonably well and outperformed the broader indices, not all banks have participated, including HDFC Bank. And hence, while some investors are happy, others have been disappointed depending on the stock they have invested in,” Damania added. HDFC Bank is down nearly 6 per cent so far this year, while RBL Bank has tanked 28 per cent and IDFC First Bank has plunged 26 per cent on the BSE.

Among gainers, Canara Bank has jumped 15 per cent, Bandhan Bank about 13 per cent and State Bank of India 12 per cent, while ICICI Bank, Axis Bank and Yes Bank are up 7-8 per cent. IndusInd Bank has risen by over 6 per cent, while Kotak Mahindra Bank is up about 2 per cent. “It is generally said that the banking sector is the mother sector to give a signal of economic growth and we can clearly see that the Nifty Bank index has outperformed the Nifty-50 index by 300 bps on a month-on-month basis. If we dig more, interestingly we see retail loan book (housing loans) growing faster than industrial loans which is the main driver of bank credit in recent quarters,” said Prashanth Tapse, Vice President (Research), Mehta Equities Ltd.

In a rising interest rate scenario, banks tend to benefit as the net interest margin expands naturally with their cost remaining stable for a short term. This has helped banks outperform and deliver handsome returns for investors so far, he added. Damania of MarketsMojo said both public and private sectors have seen some banks doing well and others not gaining so much, but PSU banks seem to have done better at a sub-index level. “The Nifty PSU bank index in 2022 is up by 10.18 per cent versus a rise of 3.5 per cent in the Nifty bank index,” he said.

Cyril Charly, Research Analyst at Geojit Financial Services, said even though banks showed solid numbers and an optimistic outlook, the performance of banking stocks was hit by a significant sell-off by Foreign Portfolio Investors (FPIs). However, the recent reversal in FPI trend and attractive valuations have helped banking stocks to outshine other sectors, Charly added. The performance of the banking stocks has been particularly good in the last few weeks with the BSE Bankex index rising by nearly 13 per cent since mid-June.

Charly said the industry is poised for a solid performance in the second half of 2022 with a greater emphasis on growth owing to the strong resurgence in loan growth, improved asset quality, a healthy provision coverage ratio and strong capital adequacy. “However, due to its substantial exposure to foreign investments, FPIs will also play a significant role in defining the trend. The recent reversal of FII trend to net buying is a positive development for the sector,” Charly added.

Tapse also said that the bank index is headed for further outperformance as the net interest margins of banks are in expanding mode due to a rising interest rate scenario. Besides, NPAs are now at their 10-year low level and the credit growth is getting consolidated in the hands of larger banks, he added. Krishnan ASV, Senior Vice President, Institutional Research, HDFC Securities, said, “We remain constructive on the banking sector, with a preference for well-capitalised, strong deposit franchises.”

Damania from MarketsMojo, however, said that despite the banking stocks or index being good performers, banks as an index may underperform in the second half of 2022 for a very simple reason when the economy slows, it impacts credit growth.

(PTI)

Source: freepik.com

Sensex jumps 486 points in early trade amid firm global market trends

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The broader NSE Nifty advanced 126 points to 16,175.20 in early trade. Among the Sensex constituents, Infosys,Tech Mahindra, Larsen & Toubro, Sun Pharma, IndusInd Bank, Wipro, Tata Steel and UltraTech Cement were the major gainers.

Market benchmark indices started the trade on a firm note on Monday, with the Sensex climbing 485.98 points amid positive trends in global equities and buying in IT shares. The 30-share BSE benchmark was trading 485.98 points higher at 54,246.76. The broader NSE Nifty advanced 126 points to 16,175.20 in early trade. Among the Sensex constituents, Infosys,Tech Mahindra, Larsen & Toubro, Sun Pharma, IndusInd Bank, Wipro, Tata Steel and UltraTech Cement were the major gainers.

HDFC Bank, Mahindra & Mahindra and HDFC were the laggards. In Asia, markets in Seoul, Shanghai and Hong Kong were trading significantly higher. The US markets had ended sharply higher on Friday. Meanwhile, international oil benchmark Brent crude jumped 0.72 per cent to USD 101.89 per barrel. The BSE barometer climbed 344.63 points or 0.65 per cent to settle at 53,760.78 on Friday and the Nifty advanced 110.55 points or 0.69 per cent to 16,049.20. Foreign institutional investors went in selling mode as they offloaded shares worth Rs 1,649.36 crore in the capital market on Friday, as per exchange data.

PTI

economy

Stock Market Minnows Lag Behind; Take Bigger Hit Than Blue-Chips

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Experts said that there has been nervousness across the capital markets both domestic and globally mainly driven by these challenges.

Falling up to 13 per cent this year so far, BSE smallcap and midcap stocks have lagged behind the benchmark Sensex as experts said these indices had climbed more than the frontline index during the “good times” and a deeper correction is natural in the current turbulent times. Equity markets have faced many headwinds this year with the emergence of geopolitical tensions, inflation concerns and unabated selling by foreign funds. Experts said that there has been nervousness across the capital markets both domestic and globally mainly driven by these challenges.

The BSE smallcap index has tumbled 3,816.95 points or 12.95 per cent this year so far while the midcap gauge fell by 2,314.51 points or 9.26 per cent. In comparison, the 30-share BSE Sensex declined by 3,771.98 points or 6.47 per cent this year. “The mid and smallcap indices had also gone up a lot more than the Sensex during good times so it is only natural that they will fall more than the Sensex during bad times. Rise and fall in mid and smallcaps tend to be more pronounced than their largecap counterparts,” said Rahul Shah, Co Head of Research, Equitymaster.

He further said as far as the current trend is concerned, while the markets are no longer expensive, they aren’t cheap either. “This is a market where quality and growth will be rewarded and expensive valuations and bad quality will be rejected,” Shah added. The BSE smallcap gauge hit its 52-week low of 23,261.39 on June 20 this year. It had reached its one-year peak of 31,304.44 on January 18. The midcap index fell to its 52-week low of 20,814.22 on June 20. It climbed to its one-year high of 27,246.34 on October 19 last year.

The Sensex hit its 52-week low of 50,921.22 on June 17 this year. The benchmark hit its one-year high of 62,245.43 on October 19, 2021. “Over the last six months there has been a bit of nervousness across the capital markets both globally and domestic markets and clearly this nervousness has been driven by challenges on the economic front, geopolitical tensions, high inflationary environment, higher interest rates, intensive foreign institutional investor selling. “So, in the face of it does look like midcaps & smallcaps have underperformed but we have to also keep in mind that midcaps & smallcaps have been significantly outperforming in the last two years plus,” said Sachin Shah, Fund Manager, Emkay Investment Managers Limited.

Small stocks put up a stellar show in 2021 giving returns of 63 per cent amid a dream run in the equity market. In 2021, the midcap index gained 7,028.65 points or 39.17 per cent while the smallcap index zoomed 11,359.65 points or 62.76 per cent. In comparison, the Sensex jumped 10,502.49 points or 21.99 per cent last year. The Sensex had gained 15.7 per cent in year 2020. Small and midcap stocks had gained up to 24.30 per cent in 2020.

According to market analysts, small stocks are generally bought by local investors, while overseas investors focus on blue-chips. “We are in a correction phase since October 2021 or we can say that a short-term bear phase and generally, midcap and smallcaps tend to witness large moves on both sides compared to frontline stocks. “Inflation is a key trigger for the correction in the market and we know that large companies are better placed to pass on higher input costs while midcap and smallcap companies have to take a hit on their margins which is another reason for their underperformance,” Sunil Nyati, Managing Director at Swastika Investmart Ltd, said.

Indian markets remained resilient despite lots of headwinds and record selling by FIIs (Foreign Institutional Investors) thanks to domestic money, Nyati added. “Going forward, all eyes will be on quarterly results as they will be the real indicator of the health of India Inc. If quarterly results come out better-than-expected then we could see some buoyancy otherwise markets may continue to remain range-bound with select pockets doing well while others may feel the pressure,” Rahul Shah added.

As per Nyati, it seems that worst is behind us in terms of inflation therefore we can expect an upmove in the Indian equity market from here. “If FIIs come back in the market then we can expect outperformance by largecap stocks in the near term however over the long period midcap and smallcap stocks tend to outperform as we are in a long-term bull market,” he added.

PTI

economy

Sensex drops over 130 pts in early trade; Nifty tests 17,000

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From the 30-share pack, HDFC Bank, HDFC, Kotak Mahindra Bank, Bajaj Finance, State Bank of India, Dr Reddy’s, Bajaj Finserv, Nestle India, Asian Paints, HCL Technologies, TCS and Tech Mahindra were among the biggest laggards

Equity benchmark Sensex fell over 130 points in early trade on Monday, tracking losses in index-heavyweights HDFC twins, TCS and HCL Tech amid a weak trend in Asian markets and renewed foreign fund outflows. The 30-share BSE barometer was trading 138.56 points lower at 57,223.64 in opening trade. Similarly, the broader NSE Nifty dipped 43.55 points to 17,109.45.

From the 30-share pack, HDFC Bank, HDFC, Kotak Mahindra Bank, Bajaj Finance, State Bank of India, Dr Reddy’s, Bajaj Finserv, Nestle India, Asian Paints, HCL Technologies, TCS and Tech Mahindra were among the biggest laggards. On the other hand, Maruti Suzuki India, ITC, Bharti Airtel and Sun Pharma were trading in the green.

On Friday, the 30-share BSE benchmark dropped 233.48 points or 0.41 percent to settle at 57,362.20. The Nifty had declined 69.75 points or 0.40 percent to 17,153. Equity exchanges in Tokyo and Shanghai were quoting lower, while Hong Kong and Seoul traded higher during mid-session deals.

Stock exchanges in the US also ended on a mixed note on Friday. Meanwhile, international oil benchmark Brent crude declined 2.65 percent to USD 117.45 per barrel. Foreign institutional investors (FIIs) were net sellers in the capital market, as they sold shares worth Rs 1,507.37 crore on Friday, according to the stock exchange data.

Overseas investors have pulled out a net Rs 1,14,855.97 crore from the Indian markets in the current year, so far, amid heightened geopolitical tensions and inflation concerns. Foreign portfolio investors have sold domestic equities worth Rs 48,261.65 crore so far this month, taking the year-to-date tally this year to a massive Rs 1,14,855.97 crore, according to depositories data.

“Even though the Ukraine war and the consequent crude spike impacted markets initially, the war is not impacting markets much now. The major headwinds for markets in 2022 will continue to be the high US inflation and Fed tightening,” said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

PTI

economy

Sensex jumps 264 points in early trade, Nifty above 17,300

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The 30-share Sensex was trading 264.02 points or 0.45 per cent higher at 58,127.95. Likewise, the Nifty gained 66.3 points or 0.38 per cent to 17,353.35.

Equity benchmark Sensex jumped 264 points in early trade on Monday, tracking gains in index majors Maruti, Infosys and TCS amid a largely positive trend in global equity markets.

The 30-share Sensex was trading 264.02 points or 0.45 per cent higher at 58,127.95. Likewise, the Nifty gained 66.3 points or 0.38 per cent to 17,353.35.

Among Sensex constituents, Maruti Suzuki India, Wipro, Tech Mahindra, Tata Steel, Infosys, Titan, Tata Consultancy Services and HCL Technologies Limited were the lead gainers.

In contrast, Asian Paints, Kotak Mahindra Bank, Power Grid and Hindustan Unilever Limited were among the laggards.

On Thursday, the 30-share BSE benchmark rallied 1,047.28 points or 1.84 per cent to finish at 57,863.93. Likewise, the broader NSE Nifty surged 311.70 points or 1.84 per cent to 17,287.05.

Equity markets were closed on Friday on account of Holi.

“US markets closed on a positive note on Friday with NASDAQ closing 2 per cent higher. The majority of the Asian markets are also trading in green in Monday’s trade,” said Mohit Nigam, Head – PMS, Hem Securities.

Equity exchange in Shanghai was trading marginally higher, while Hong Kong was quoting lower in mid-session deals. Tokyo was closed for a holiday.

Stock exchanges in the US closed with significant gains on Friday.

Meanwhile, international oil benchmark Brent crude jumped 2.71 per cent to USD 110.8 per barrel.

Foreign institutional investors were net buyers after they bought shares worth Rs 2,800.14 crore on Thursday, according to exchange data.

“Nifty after the 15 per cent correction from the peak has climbed back by 10 per cent. This resilience of the market even amid uncertainties and challenges is significant from the investors’ perspective.

“For the short-term, the biggest positive for the market is the FPIs turning buyers. Crude again back at USD 110 is a headwind,” according to V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

PTI

economy

Sensex jumps 264 points in early trade, Nifty above 17,300

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The 30-share Sensex was trading 264.02 points or 0.45 per cent higher at 58,127.95. Likewise, the Nifty gained 66.3 points or 0.38 per cent to 17,353.35.

Equity benchmark Sensex jumped 264 points in early trade on Monday, tracking gains in index majors Maruti, Infosys and TCS amid a largely positive trend in global equity markets.

The 30-share Sensex was trading 264.02 points or 0.45 per cent higher at 58,127.95. Likewise, the Nifty gained 66.3 points or 0.38 per cent to 17,353.35.

Among Sensex constituents, Maruti Suzuki India, Wipro, Tech Mahindra, Tata Steel, Infosys, Titan, Tata Consultancy Services and HCL Technologies Limited were the lead gainers.

In contrast, Asian Paints, Kotak Mahindra Bank, Power Grid and Hindustan Unilever Limited were among the laggards.

On Thursday, the 30-share BSE benchmark rallied 1,047.28 points or 1.84 per cent to finish at 57,863.93. Likewise, the broader NSE Nifty surged 311.70 points or 1.84 per cent to 17,287.05.

Equity markets were closed on Friday on account of Holi.

“US markets closed on a positive note on Friday with NASDAQ closing 2 per cent higher. The majority of the Asian markets are also trading in green in Monday’s trade,” said Mohit Nigam, Head – PMS, Hem Securities.

Equity exchange in Shanghai was trading marginally higher, while Hong Kong was quoting lower in mid-session deals. Tokyo was closed for a holiday.

Stock exchanges in the US closed with significant gains on Friday.

Meanwhile, international oil benchmark Brent crude jumped 2.71 per cent to USD 110.8 per barrel.

Foreign institutional investors were net buyers after they bought shares worth Rs 2,800.14 crore on Thursday, according to exchange data.

“Nifty after the 15 per cent correction from the peak has climbed back by 10 per cent. This resilience of the market even amid uncertainties and challenges is significant from the investors’ perspective.

“For the short-term, the biggest positive for the market is the FPIs turning buyers. Crude again back at USD 110 is a headwind,” according to V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

PTI

Source: freepik.com

Equity Benchmarks Continue Their Gains

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The blue chip NSE Nifty 50 index closed up 1.45 per cent at 16,871.30, while the benchmark BSE Sensex gained 1.68 per cent to end at 56,486.02

Domestic equity benchmarks continued their gains for fifth straight day as investors decided to shrug off weak global cues. The blue chip NSE Nifty 50 index closed up 1.45 per cent at 16,871.30, while the benchmark BSE Sensex gained 1.68 per cent to end at 56,486.02.

Even as the war in Central Asia gets intense and the Federal Reserve planning to hike interest rates for the first time since 2018, investors decided to continue buying in banks and IT firms.

Not only domestic indices but global markets too rose on Monday as oil prices extended last week’s decline after both Russia and Ukraine gave their most upbeat assessment yet of prospects for talks. The slide in oil prices is a positive for India in terms of containing inflation, as the country is the world’s third biggest oil importer and consumer.

“For the fifth straight day in a row, the benchmark indices continued the positive momentum as these indices successfully cleared the short term technical resistance on the charts. Banking and financials stock outperformed, rallied over two per cent, whereas some profit booking was seen in realty and metal stocks,” said Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities.

The Nifty Bank Index gained 2.22 per cent, helped by HDFC Bank, which added 3.3 per cent after saying on Saturday that the central bank had lifted restrictions on some of its activities under its digital programme. 

Among individual stocks, digital payments company Paytm slid 12.9% after the central bank barred Paytm Payments Bank from taking on new customers and ordered a comprehensive audit of its IT systems.

“Technically, after a long time the Nifty succeed to close above 20- days SMA. It has formed bullish candle on the daily chart. We are of the view that as long as Nifty trading above 16700 the uptrend will continue in the near future. For the bulls immediate hurdle would be 17000 or 200 Day SMA. On the downside, below 16700 strong possibility of quick intraday correction on the Nifty is not ruled out. Below 16700 Nifty could retest 16620 and 16550,” said Chouhan.

Jubilant FoodWorks the Indian franchise partner of Domino’s Pizza fell as much as 12.2 per cent. Several brokerages downgraded their price target for the company after its top boss resigned on Friday.

(With inputs from Reuters)

economy

Sensex sprints 1,595 pts, Nifty tops 16,750

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From the 30-share Sensex pack, Axis Bank, State Bank of India, ICICI Bank, Indusind Bank, Maruti Suzuki India and Hindustan Unilever Limited were the biggest gainers in early trade, jumping up to 4.85 per cent.

Equity benchmark indices continued their winning momentum on Thursday and jumped nearly 3 per cent in the opening trade, tracking an overall bullish trend in global markets.

The 30-share BSE benchmark index opened in the green and further zoomed 1,595.14 points or 2.91 per cent to 56,242.47, continuing its rally for the third day.

Similarly, the NSE Nifty jumped 411.95 points or 2.52 per cent to 16,757.30.

From the 30-share Sensex pack, Axis Bank, State Bank of India, ICICI Bank, Indusind Bank, Maruti Suzuki India and Hindustan Unilever Limited were the biggest gainers in early trade, jumping up to 4.85 per cent.

In contrast, Tata Steel was the lone laggard.

Bourses in Hong Kong, Tokyo and Shanghai were quoting in the green in mid-session deals.

Stock exchanges in the US settled with significant gains on Wednesday.

In the previous trade, the BSE benchmark settled at 54,647.33, higher by 1,223.24 points or 2.29 per cent, notching up the biggest single-day gain since February 25.

The Nifty also climbed 331.90 points or 2.07 per cent to end at 16,345.35.

Meanwhile, international oil benchmark Brent crude jumped 1.66 per cent to USD 113 a barrel.

Foreign institutional investors continued their selling spree in Indian markets as they offloaded shares worth Rs 4,818.71 crore on a net basis on Wednesday, according to exchange data.

“The outcome of the Uttar Pradesh election will be widely watched by markets because it will set the tone for how the ruling Bharatiya Janata Party approaches and prepares for the general elections in 2024,” according to Mohit Nigam, Head – PMS, Hem Securities.

Counting of votes were underway on Thursday in the five states where assembly polls were held recently.

PTI

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