Sensex jumps 385 points to regain 66k, Nifty settles above 19,700; J&K Bank, Coal India surge up to 13%

Domestic equity markets continued to move higher on Thursday and extended their gains to fifth consecutive sessions, bucking the weak sentiments from the global markets. Buying in heavyweight sectors like financials and banking pushed the headline indices higher. However, global uncertainty may weigh on Dalal Street.

For the day, BSE's barometer Sensex surged more 385.04 points, or 0.58 per cent, to settle at 66,265.56, while NSE's Nifty gained 116 points, or 0.59 per cent, to close at 19,727.05. Broader markets were in line-line with the headline peers as the BSE midcap and smallcap indices added about half-to-two-third per cent. Fear gauge India VIX jumped more than 2 per cent to 10.87-level.

After a volatile start, markets rebounded sharply to maintain its upward bias for the fifth consecutive session, even as foreign inflows continued to be patchy amid falling rupee and global economic uncertainty. Today's rally came despite weakness across the Asian and US markets, as investors remain upbeat about India's long-term growth prospects, said Shrikant Chouhan, Head of Research (Retail), Kotak Securities.

"Technically, the Nifty successfully cleared the short-term resistance of 19,650 and post breakout it intensified the positive momentum. Higher bottom formation on intraday charts and bullish candle on daily charts supports further uptrend from the current levels. We are of the view that, 19,650 would be the key level to watch out for, and above the same the index could move up till 19,800-19,825. On the flip side, below 19,650, the uptrend would be vulnerable," he added.

On a sectoral front, the Nifty realty index topped among the gainers, while the Nifty PSU bank, media private bank and financial services indices added about a per cent each. Among the laggards, the Nifty FMCG, Metal, Pharma and healthcare indices settled in red for the day.

Indian equities commenced the weekly expiry day on an extremely flat note but soon picked up momentum. In the second half of the session, a sharp uptick was seen across the board, especially in the banking counters which pushed the index further higher Apart from the banking, realty and media sectors also participated in the rally, said Aditya Gaggar, Director at Progressive Shares.

In the Nifty50 pack, Coal India led the gainers and surged about 7 per cent, followed by Larsen & Toubro which gained more than 4 percent. IndusInd Bank, SBI Life Insurance Company, State Bank of India, Tech Mahindra and HCL Technologies rose about 2 per cent each for the day.

Among the laggards, Tata Consumer Products tanked more than 2 per cent, while ONGC, Britannia, Mahindra & Mahindra, Cipla, Infosys, Ultratech Cement, Hindalco and Hindustan Unilever settled about a per cent each during the day.

The domestic market initially opened with a lackluster performance, influenced by weak global cues. However, as the day progressed, a decline in U.S. bond yields and crude oil prices injected some positivity into the market, said Vinod Nair, Head of Research at Geojit Financial Services.

"This optimism was most prominent in banking stocks. Interestingly, mid- and small-cap stocks managed to retain investor interest even though their valuations are relatively high. Nonetheless, the persistently weak trade data from China continues to cast a shadow over the global market's outlook," he added.

A total of 3,807 shares were traded on BSE on Thursday, of which 2,241 settled with gains. 1,436 stocks ended the session with cuts while 130 shares remained unchanged. A total of 380 shares hit their upper circuit, whereas 166 shares tested the lower circuit levels for the day.

Benchmark Indices staged a smart afternoon rally today with the help of PSU & Infrastructure stocks. With a 13.5 per cent share of the market capitalisation, PSU companies have seen a robust jump from just over 9 per cent in 2021. ETF Flows during the late afternoon also helped Large-Caps recover lost ground, said S Ranganathan, Head of Research at LKP securities.

In the broader markets, Cochin Shipyard hit an upper circuit of 20 per cent, followed by GRL Infrastructure which gained more than 19 per cent. Sadhana Nitrochem jumped 18 per cent while, Shreyas Shipping & Logistics and J&K Bank surged 13 per cent each for the day. Jaiprakash Power Ventures ended 11 per cent higher.

Among the losers, NGL Fine Chem dropped about 6 per cent, while Jai Balaji Industries and HPL Power & Electric hit lower circuits of 5 per cent each. Jupiter Wagons and ADF Foods also settled 5 per cent down for the day. Pokarna and APL Apollo Tubes ended 4 per cent down.

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