Bank, IT stocks push markets up
Sensex soars over 400 points; Nifty reclaims 11,500-mark
Mumbai: Benchmark indices ratcheted higher on Thursday as banking, finance and IT stocks surged amid expiry of March series derivatives contracts.
The BSE Sensex vaulted 412.84 points, or 1.08 per cent, to close at 38,545.72, while the broader NSE Nifty settled at 11,570, higher by 124.95 points or 1.09 per cent.
Rate-sensitive banking, realty and auto counters spurted on expectations of a rate cut by RBI next week, brokers said. Heavy short-covering on expiry of March series futures and options (F&O) contracts also buoyed investor sentiment, they added.
Global equities were mixed amid a fall in bond yields, underscoring recession fears.
"Benchmark indices outperformed the broader indices on the expiry day supported by banks and IT.
Bank Nifty propelled to a new high in expectation of rate cut from RBI next week and recapitalisation of banks. Besides, the slide in India's 10-yr bond yield further raised the possibility of rate cut," said Vinod Nair, Head of Research, Geojit Financial Services.
Except metal and power, all BSE sectoral indices finished with gains, led by realty, teck, IT, bank and finance. On a net basis, foreign portfolio investors (FPIs) bought shares worth Rs 1,481.11 crore on Wednesday, and domestic institutional investors (DIIs) were net buyers to the tune of Rs 134.92 crore, provisional data available with the BSE showed.
The rupee, meanwhile, depreciated 11 paise against the US dollar to 68.99 (intra-day).The benchmark Brent crude futures were trading lower by 0.37 per cent at $67.58 per barrel.