Stock Market: Sensex Surges 700 Points, Nifty Nears 22,800 As NDA Backs Modi As PM
Indian shares saw a higher opening on Thursday as investors eye Modi 3.0. The indices had settled over 3 per cent higher on June 5.
BSE Sensex soared 303 points or 0.41 per cent to 74,685.68 levels. NSE’s Nifty50, on the other hand, surged 76 points or 0.34 per cent to 22,696.40 levels.
NTPC, SBI were the top gainers while Nestle, HUL were the top laggards on BSE.
Similarly, on NSE, NTPC, SBI were the top gainers while HUL and Britannia were the top laggards.
Broader markets also surged. Nifty SmallCap zoomed nearly 2.5 per cent while MidCap jumped over 1.50 per cent.
Sectorally, Nifty Realty led with 2.98 per cent gains, followed by PSU Bank (up 2.62 per cent), Media (up 2.02 per cent).
Market View| V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services
“As the market comes back to normalcy after the abnormal volatility of the last three days, the global construct has turned favourable with rising possibility of rate cuts by the Fed. Clear signs of weakening labour market in the US has led to sharp decline in the US bond yield to 4.29%. Even though this is favourable for foreign capital inflows, the FIIs continue to sell on high valuations in India particularly in comparison to the cheap valuations of Chinese stocks.In the near-term we have political stability but political developments will continue to weigh on markets. A concern in the market is that the BJP’s dependence on allies might put economic reforms on the back burner impacting growth and thereby corporate earnings in the long run.”
Global Cues
Asia-Pacific markets today showed an upward trend, with Japan’s Nikkei 225 rising 1.02 per cent, while the broader Topix index climbing 0.59 per cent.
South Korea’s Kospi, too, edged up by 1.03 per cent. Futures for Hong Kong’s Hang Seng index were trading 0.85 per cent higher at 18,581 levels.
Overnight in the US, the Dow Jones Industrial Average added by 0.25 per cent. Similarly, the S&P 500 rose by 1.18 per cent, and the Nasdaq Composite advanced by 1.96 per cent.