Sensex rallies 359 points, Nifty ends above 15,700; PSU banks, realty stocks lead

After opening on a strong footing benchmark equity indices extended gains in the afternoon session with banks, financials, energy, healthcare and realty stocks leading from the front. Healthy buying was observed in blue-chip stocks like Bajaj Finance, Reliance Industries and Tech Mahindra. Investor sentiment was upbeat as finance ministry said it has released a third monthly instalment of revenue deficit grant of Rs 9,871 crore to 17 states.

Sensex closed 358 points or 0.69% higher at 52,300, while the Nifty 50 index advanced 102 points or 0.65% to end at 15,737.

Commenting on market performance for the day S Ranganathan, Head of Research at LKP Securities said, “bulls looked charged up today on weekly expiry and it was indeed heartening to see confidence personified as the broader markets saw selective buying across sectors in stocks which looked optically reasonable compared to its expensive larger peers. While the Bajaj Twins provided the firepower to the index, the Small & Midcaps put up a stellar show yet again despite apprehensions on higher valuations in select segments”

Gainers & losers

With gains of over 7.5% Bajaj Finance was the top gainer on the Sensex, followed by Bajaj Finserv rallying 3.87%. SBI (up 2.62%), IndusInd Bank (up 2.15%) and ITC (up 1.43%) were among the top gainers.

Whereas stocks like Bajaj Auto (down 0.91%), Maruti (down 0.83%), PowerGrid (down 0.31%), HCL Tech (down 0.29%) and UltraTech Cement (down 0.28%) were the laggards on the Sensex.

Buzzing sectors

Barring Nifty Auto (down 0.11%) all other sectoral indices ended in the green terrain. Nifty Realty index advanced 3.34%, Nifty PSU Bank surged 2.40% and Nifty Financial Services rallied 1.21% and Nifty Metal index gained 1.07%. While Nifty Bank & Nifty IT indices rose around 0.95% each and the Nifty FMCG index was up 0.40%.

The volatility gauge India VIX heated a bit and was up about 1.69% at 15 levels.

Broader markets

The broader market continued with its outperformance as BSE MidCap and SmallCap indices ended the session 1.26 % and 1.73% higher, respectively.

The market breadth was positive as 1,523 shares advanced compared to 439 stocks declining and 294 scrips remained unchanged.

Global markets

Most European shares declined while Asian stocks traded higher on Thursday, June 10, 2021. Focus is locked on Thursday’s release of U.S. consumer price data and a European Central Bank meeting for further clues about how soon policymakers may begin to withdraw support for Europe’s economy rolled out following the COVID-19 crisis.

US-China tensions are in focus, with Joe Biden revoking Trump-era bans on TikTok and WeChat. The president ordered a review of software applications from foreign adversaries and action against those that pose a security risk.

Wall Street stocks ended lower on Wednesday, reversing earlier gains as investors awaited inflation data for clues as to when the U.S. Federal Reserve might tighten its dovish monetary policy.