Sensex gains 333 points as market stabilises; Nifty rises amid positive global cues

BSE Sensex was up by 0.45 per cent or 333 points at 74,715, while the NSE Nifty was at 22,718 up by 0.43 per cent or 97 points in early trading. A total of 2,708 stocks were actively traded, of which 2,226 advanced, while 385 declined and 97 stocks remained unchanged, where 41 stocks hit a 52-week high and 19 stocks hit a 52-week low at 9.30 am on Thursday.

Dr. VK Vijayakumar, Chief Investment Strategist, Geojit Financial Services, said, “As the market returns 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 a weakening labour market in the US has led to a sharp decline in the US bond yield to 4.29 per cent. 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 the 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.”

Top gainers on the NSE include PC (4.47%), ONGC (3.47%), SBI (3.20%), Shriram Finance (3.10%), Coal India (3.08%). Top losers include, Britannia (-2.96%), Hindustan Unilever (-2.96%), Divi’s Lab(-2.46%), Hero Motocorp(-2.29%), Nestle India (-2.15%)

BSE Smallcap was up by 2.41 per cent and Midcap up by 2.07 per cent, indicating gains.

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