Equity markets climbed over 1 per cent on Thursday, the day of April F&O expiry, as investors indulged in short covering.
Benchmark indices after opening in the green on April 28 extended gains with Sensex surging 701.67 points or 1.23% at 57521.06, and the Nifty adding 206.60 points or 1.21% at 17245. About 1594 shares have advanced, 1729 shares declined, and 104 shares are unchanged.
26 of the 30 Sensex constituents and 45 of the 50 Nifty constituents ended the day in the green led by HUL, HDFC Life, SBI Life, Asian Paints, UPL, PowerGrid, L&T, NTPC, SBI, and Infosys.
In the broader markets, the BSE MidCap index added 0.86 per cent while the BSE Smallcap index edged only 0.19 pee cent higher.
VK Vijayakumar, chief investment strategist at Geojit Financial Services, said:”A clear trend in markets now, in developed markets as well as in India, is the preference for value stocks over high-priced growth stocks. This is partly a reflection of risk aversion among investors in the present context of mounting challenges posed by the expected aggressive tightening by the Fed and the uncertainties arising from the Ukraine war that is getting prolonged.”
“Dollar index at 103 indicates flight to safety and this implies that FPIs will continue to sell in this market. Sell on rallies is likely to be the texture of this market in the near term. Long-term investors who can ignore short-term gyrations in the market can buy high-quality stocks in banking and IT which are depressed due to FPI selling,” Vijayakumar said.
Global Cues
US stocks on Wall Street managed only meager gains Wednesday, after a broad rally led by technology companies faded by late afternoon, leaving the market little changed a day after a big sell-off. The S&P 500 rose 8.76 points to 4,183.96, while the Dow added 61.75 points to 33,301.93. The Nasdaq slipped 1.81 points to 12,488.93.
Tokyo shares rose in morning trade on Thursday after US indices avoided further sharp falls, relieving investors who also cheered solid corporate earnings. The Nikkei 225 index opened flat then firmed 0.42 percent, or 110.19 points, to 26,496.82, while the broader Topix index added 0.70 percent, or 13.05 points, to 1,873.81. The dollar stood at 128.46 yen, barely changed from 128.43 yen on Wednesday in New York.
Hong Kong stocks opened with gains Thursday morning following a broadly positive lead from Wall Street and Europe and after Chinese officials made further commitments to provide support to the country’s economy. The Hang Seng Index rose 0.86 percent, or 172.43 points, to 20,118.79. But the Shanghai Composite Index dipped 0.42 percent, or 12.47 points, to 2,945.81, while the Shenzhen Composite Index on China’s second exchange dipped 0.55 percent, or 10.09 points, to 1,811.30.
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