Positive domestic cues buoy equity indices; banking stocks rise (Ld)

Positive domestic cues such as scrapping of domestic retrospective tax as well as hopes of a faster economic recovery buoyed India’s key equity market indices during late afternoon trade session on Thursday.

Initially, markets had a gap up opening and gradually moved up through the morning to touch record high levels.

Globally, Asian shares were mixed on Thursday as worries about Chinese regulatory changes and the spread of the Delta variant of the coronavirus weighed on sentiment.

Sector wise, indices such as Media, IT, PSE and PSU Bank moved higher, whereas pharma stocks fell.

Notably, the NSE Nifty50 touched a record high of 16,375.50, while S&P BSE Sensex reached 54,862.2 points during the session.

Consequently, the S&P BSE Sensex at 2.45 p.m. traded at 54,790.52, higher by 264.59 points or 0.49 per cent from its previous close.

The NSE Nifty50 traded at 16,352.15, higher by 69.90 points or 0.43 per cent from its previous close.

“Advance decline ratio has turned positive bringing relief to market participants. Broad market indices like smallcap and midcap indices have outperformed the Nifty,” said Deepak Jasani, Head of Retail Research, HDFC Securities.

According to Gaurav Garg, Head of Research at CapitalVia Global Research: “Indian benchmark continued to trade positively after the bounce back from the support level of 16,200.”

“Sentiments were positive as the Centre withdrew retrospective tax amendments. This is a setback for the government, but the market has taken it well and it will help the big global conglomerates to show interest in the domestic market.”