Benchmark equity index Sensex on Wednesday ended the intraday trade above the 39,000-mark for the first time in six months amid upbeat global cues. BSE Sensex ended at 39,073.92, up 230.04 points or 0.59 per cent. The index had last closed above the 39,000-level on February 27 this year. Similarly, the NSE Nifty advanced 77.35 points or 0.67 per cent to end at 11,549.60.
IndusInd Bank, Reliance Industries, Axis Bank, Kotak Bank, Bajaj Auto and HCL Tech were the top gainers. Bharti Airtel, UltraTech Cement, Asian Paints, Maruti, L&T, NTPC and HDFC were among the main laggards.
"With upbeat global cues and sustained recovery in banking majors, we expect Nifty to test our immediate target of 11,600 levels soon. Though all the sectors are contributing to the move on a rotational basis, traders may find it difficult to choose stocks after the substantial surge. We suggest preferring private banking, FMCG and select counters from energy and IT space for fresh buying," said Ajit Mishra, VP - Research, Religare Broking.
Here are 5 things to know before Thursday's opening bell:
GST Council meet
The GST Council is scheduled to meet on August 27 to discuss the compensation payout to states and the opinion of the Attorney General on the legality of market borrowing to meet revenue shortfall. The next meeting of the Council would be held on September 19, agenda for which is yet to be decided.
Volatility is expected to remain on a higher side in the markets due to scheduled August F&O expiry that contracts tomorrow. "(Thursday) is the monthly F&O expiry day. Though index volatility has been limited in the past month, stock specific moves have been large and hence we could see some sharp moves in select stocks on squaring up/rolling over of positions," said Deepak Jasani, Head of Retail Research, HDFC Securities.
Global markets were on the upswing ahead of a key speech by US Federal Reserve Chairman Jerome Powell at the Jackson Hole symposium. In the rest of Asia, bourses in Hong Kong and Seoul ended with gains, while Shanghai and Tokyo closed lower. In Europe, stock exchanges in Paris and Frankfurt were trading on a positive note in early deals, while London witnessed losses.
The government today announced its plans to sell up to 15 per cent stake via offer for sale (OFS) in the country's largest aeronautical company, amid its divestment drive in state-run enterprises. The move could have an impact on the PSU index in tomorrow's trade.
Oxford COVID-19 vaccine trial
Phase 2 trials of Oxford coronavirus vaccine, being manufactured by Serum Institute of India (SII), have begun in India. The clinical trials began at Pune's Bharti Vidyapeeth's Medical College and Hospital where two male volunteers were administered the vaccine. "Doctors at the hospital administered the first shot of the 'Covishield' vaccine to a 32-year-old man after his reports of COVID-19 and antibodies tests came out negative," Medical Director of Bharti Vidyapeeth's Medical College, Hospital and Research Centre, Dr Sanjay Lalwani told PTI. The vaccine was also given to another 48-year-old male volunteer, Lalwani added.
What technical analysts say
"The short term trend of Nifty continues to be positive. Next upside resistance to be watched at 11,650 for the next few sessions. Immediate support to be watched at 11,450. A decisive/sustainable move above 11,600-11,650 could pull Nifty towards the next upside of 11,900-12,000 in the near term," said Nagaraj Shetti, Technical Research Analyst, HDFC Securities.
"Markets are expected to trade uncertain on lack of fresh triggers while stock specific action will continue," said Vinod Nair, Head of Research at Geojit Financial Services.