Sensex recovers 5% in 3 days: Retail buying, poll results boost
Domestic benchmark indices on Thursday rallied by 1.5 per cent on the back of strong global cues and state election results. Despite high crude oil prices, the Sensex jumped another 817 points to 55,464.39, taking the gain in the last three days to 2,622 points, or nearly 5 per cent. The NSE Nifty index rose 250 points to 16,594.90 on hectic buying by retail investors.
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Market capitalisation, or the market value of all listed companies, jumped by over Rs 10.8 lakh crore to Rs 251.9 lakh crore as stocks extended their rising streak for the third consecutive session on Thursday. Retail investors were buyers in large caps and other blue chips which were beaten down in the last ten days, said an analyst.
The rupee gained by 19 paise to close at 76.43 against the dollar on Thursday, aided by strong domestic equities and trends in state election results.
Vinod Nair, head of research at Geojit Financial Services, said, “Hopes of progress in high-level talks between Russia and Ukraine and a surge in the Asian market, the Indian market started with a strong gap-up. The outperformance was supported by positive state election results being in line with expectations. However, a weak western market ahead of ECB and US CPI data and rise in crude prices added volatility in between.” FPI selling also came down to Rs 1,981 crore on Thursday.
Positive global sentiment and easing crude oil prices led to the gap-up opening in the benchmark. As the day progressed, sentiments boosted as the state elections outcome so far indicated a clear majority to the BJP in four states out of five, showing political stability, according to Ajit Mishra, VP-research, Religare Broking.
Among the sectors, healthy buying in sectors such as realty, PSU banks and FMCG supported the rally. The broader markets too ended in the positive range of 1-1.4 per cent. All the sectoral indices ended in the green.
However, sustainability of the recovery would depend on how the geopolitical situation and its impact on crude. Further escalation in the Russia-Ukraine conflict will hit the sentiment, analysts said.
