Sensex, Nifty rise 1% on bargain hunting

Mumbai: The domestic stock markets rallied for the second straight day on Thursday with the benchmark Sensex jumping nearly 693 points on easing political worries as the ruling NDA set in motion its government formation efforts. Regaining the 75,000 level, the 30-share BSE Sensex jumped 692.27 points or 0.93 per cent to settle at more than week high of 75,074.51. During the day, the barometer soared 915.49 points or 1.23 per cent to 75,297.73. The NSE Nifty climbed 201.05 points or 0.89 per cent to 22,821.40 with 38 of its constituents ending with gains. Intra-day, it rallied 289.8 points or 1.28 per cent to 22,910.15. As many as 3,009 stocks advanced while 834 declined and 102 remained unchanged on the BSE.

“The benchmark indices maintained their positive momentum, as the new coalition is about to swear in, which is predicted to be a stable government. However, anxiety persists over the new Cabinet being put in place and policy measures expected to be announced in the coming budget. The market is awaiting fresh signals from the RBI’s comments on liquidity,” said Vinod Nair, head (research), Geojit Financial Services.

“It appears that markets have adjusted to the recent election results, and stability on the global front is further boosting positivity,” said Ajit Mishra, SV-P (research), Religare Broking Ltd.

In the broader market, the BSE smallcap gauge jumped 3.06 per cent, while midcap index climbed 2.28 per cent.

All the indices ended with gains, with realty soaring 4.85 per cent, industrials jumping 3.69 per cent, power by 2.87 per cent, IT by 2.86 per cent, utilities by 2.52 per cent and energy by 2.34 per cent.

Key indices Sensex and Nifty had plunged by nearly 6 per cent on Tuesday due to below-expectation results of Lok Sabha polls. Investors lost a record Rs31 lakh crore in a single day due to market meltdown. The indices recovered more than three per cent on Wednesday with NDA allies affirming their support to BJP to form the new government. Realty, IT, and oil & gas shares led the recovery while FMCG and healthcare witnessed profit booking. Among the 30 Sensex companies, Tech Mahindra, HCL Technologies, State Bank of India, NTPC, Infosys, Larsen & Toubro, Tata Consultancy Services and Wipro emerged as the biggest gainers.