Sensex rises over 350 points, Nifty tops 18,100; Adani stocks climb up to 5%

Domestic equity markets opened with big gains on Thursday, tracking the firm global cues and all-around buying across all sectors. US stocks settled higher in the overnight trade, whereas Asian peers were trading with big gains in the early trade. Strong US retail sales data signalled strength in the world's biggest economy.

At 9.25 am, the BSE Sensex surged 381.73 points, or 0.62 per cent, at 61,656.82. NSE's Nifty50 rose 104.10 points, or 0.58 per cent, to 18,119.95 at the same time. Broader markets were also trading higher as BSE midcap and smallcap indices added half a per cent each. Fear gauge India VIX eased more than 2 per cent to 12.56.

"The index recouped initial losses and eventually settled above the psychological mark of 18,000. The daily price action formed a bull candle carrying a higher high-low, indicating a continuance of upward momentum. In the process, the index closed above the Budget day high of around 18,000," said ICICIDirect Research.

"The index has logged a resolute breakout from 10 week’s falling channel, indicating the conclusion of corrective bias that bodes well for a resumption of the primary up trend. We expect the index to resolve higher and gradually head towards 18,300 in the coming weeks. Thus, any dip from here on should be capitalised on as an incremental buying opportunity," it said.

All the sectors of Nifty were trading with decent gains in the early trading hours. IT and Metal indices led with a rise of one per cent each. Banking, Financial Services, Pharma and Realty indices added half a per cent each.

Among the Adani Group stocks, Adani Green Energy, Adani Total Gas, Adani Wilmar, Adani Power, Adani Transmission and NDTV jumped 5 per cent each. Adani Enterprises gained over 4 per cent, whereas Adani Ports and Ambuja Cements rose about 3 per cent. ACC was up 2 per cent.

Only four stocks in the Nifty50 pack, namely Hero MotoCorp, SBI Life Insurance, HDFC Life Insurance and Grasim Industries were trading in red. All other 46 shares were trading up. Among the gainers, Apollo Hospitals rose more than 3 per cent, whereas Tech Mahindra and ONGC jumped more than 2 per cent.

Two factors have contributed to the ongoing mild rally in the market. One, the global market construct is favourable and, two, the bulls have been emboldened by the apparent change in FII strategy from selling to buying. This favourable backdrop can sustain the rally but breaking 18200 (Nifty resistance) would be tough, said VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

"After the blockbuster jobs data, the latest January US retail sales data also is impressive, indicating a resilient economy. Therefore, the US markets are discounting a soft landing for the U S economy in contrast to a hard landing feared earlier. In India, the big positive is the FIIs turning buyers during the last four days," he said.

In the broader markets, OnMobile gained more than 12 per cent, Carysil surged 11 per cent. Patel Engineering was up 9 per cent, whereas Orient Hotels, Everest Kanto Cylinders jumped 7 per cent each. Tanla Platforms, Ramco Systems and PI Industries added 5-6 per cent each.

Among the losers, EKI Energy continued to hit a lower circuit of 10 per cent at the opening tick. Interglobe Aviation plunged 5 per cent over bulk-deal buzz by promoters. Finolex Cables and Vedanta Fashions declined 4 per cent each.

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