MUMBAI: Benchmark equity indices rebounded on Thursday as investors indulged in bargain hunting given optimism for economic recovery, shrugging off selling pressure seen in the previous session. Risk appetite on Dalal Street was also aided by positive cues from other Asian and European markets.
Gains in the benchmark indices were led by leading losers of the previous day such as banks, non-banking financial companies and metals while IT companies also contributed meaningfully.
The Nifty50 index ended 0.7 per cent or 102.4 points higher at 15,737.8, while the BSE Sensex closed at 52,300.47, up 0.7 per cent or 358.8 points. However, buying in the market came on the back of lower participation as the cash market turnover nosedived 21 per cent from Wednesday’s level.
“Corporate India could compound earnings over 20 per cent for the next 3-4 years with a little bit of support from the world and if the current policy environment does not get reversed. Whatever is coming in the next 12 months may be more or less in the price, but not what is coming in the next 3-4 years,” Morgan Stanley India’s Managing Director, Ridham Desai, told ETNow.
Money managers suggested that investors will buy into every dip in the market given the sense of missing out on the overall rally is still very prevalent. The sentiment was reflected most clearly in the broader market, where buying returned with a vengeance after Wednesday’s selloff.
The Nifty Smallcap 100 index closed 1.6 per cent higher at a record high of 9,698.05, a day after falling 1.4 per cent. The Nifty Midcap 100 index jumped 1.6 per cent.
Among individual stocks, Bajaj Finance stole the show, surging over 7 per cent following optimistic comments from the company’s management on new digital transformation plans. Similarly, found its groove as it ended 2.6 per cent higher, emerging the third biggest winner on Nifty50.
Divi’s Laboratories rose over 2 per cent on hopes of strong bulk drug sales after client Merck announced a supply agreement with the US government for Covid-19 treatment drug Molnupiravir. Divi’s Lab, being a bulk drug supplier to Merck for the drug, is expected to benefit from the deal.
ITC’s stock was the biggest loser of the day, falling 1.4 per cent, followed by several automobile companies. Adani Enterprises rose 1 per cent after The Economic Times reported that the group is mulling hiving off and listing its airports business.
In the broader market, ION Exchange shares climbed 5 per cent after the company won an order worth Rs 1,000 crore. Indiabulls Housing Finance jumped 7 per cent on likely buying from some marquee institutional investors in a block deal.
Overall, the breadth of the market was strong as three stocks rose for every one scrip that fell on NSE.