Sensex surges around 400 points, Nifty above 8,550

Photo: Shutterstock
The benchmark indices continued to rally in the afternoon trade with banking and realty sectors gaining the most.

At 12.50 pm, the S&P BSE Sensex rose 470 points at 27,723 while Nifty50 was up 159 points at 8,591. Broader markets outperformed benchmark indices with BSE Midcap and Smallcap indices rising 2.4% and 2.6% respectively.

BSE Sensex gained almost 500 points at the intra-day trade while Nifty50 reached 8598.

“Nifty ended at 8497 after a selling pressure witnessed on higher level at 8,540 - 8,550. Nifty is forming lower top- and lower bottom with 8450- 8410 being the lower band of range. If Nifty is able to sustain the 8,450 level then a pullback towards 8600 is seen while 8640-8610 being the resistance in near term. A break out of range of 8,450 - 8,650 will give further trend of market,” said Mustafa Nadeem, CEO, Epic Research in a technical note.

 
Metal index led the gains with BSE Metals surging 5.89%. Jindal Steel and Tata Steel were the top gainers in the index with 9.6% and 8.9% rise respectively.  Trump’s plan to rebuild infrastructure in US added to the gains in the sector. 

SAIL gained more than 5% post Posco deal announcement in today’s trade.

Banking sector gained for the second straight day post government’s move to demonetise Rs 500 and Rs 1000 notes. 

Nifty PSU Bank index rallied 8.9% while Nifty Bank rose 3.5%. S&P BSE PSU index hit 52-week high of 8,041 in the intra-day trade and BSE Bankex was up 4% with PNB (11.9%) and SBI (9.2%)  leading the gains.

“The banking sector is expected to benefit as more money will flow into the formal sector. We expect banks to benefit in terms of more deposits, especially low cost deposits. However, in the near term, banks may witness higher stress on assets in the real estate sector,” said Kalmesh Rao, CEO, Kotak Securities .

Nifty Realty index gains as much as 5.65%, biggest intra-day percentage gain since March 2. BSE Realty also rose alomost 4% with DLF jumping 7.3%  The index fell 11.60% on Wednesday to its lowest since May 6 following PM Modi's surprise demonetisation move announcement.

Shares of Cipla surged 6.36% even after the company reported a 34.74% fall in its net profit to Rs 354.34 crore for the second quarter.

IT stocks rebounded post 3% fall yesterday after Trump victory and could remain under pressure in the near future. Infosys and Wipto are trading in red in today’s trade.


Business Standard is now on Telegram.
For insightful reports and views on business, markets, politics and other issues, subscribe to our official Telegram channel