Support from foreign institutional investors (FIIs) and encouraging global cues led the stocks on Indian markets to rise. The fresh institutional support has resulted in the best three-session rally since September 2013. The Indian market bellwether 30-stock Sensex and broad based index Nifty-50 rose for three sessions in a row.
Oil price recovery also aided the market sentiment. Bombay Stock Exchange's (BSE) Sensex and National Stock Exchange's (NSE) Nifty-50 surged over seven percent. Prediction of International Monetary Fund (IMF) about robust growth in Indian economy also brought positive buying support to the markets.
Business Standard reports that after the dreadful February, Indian stock markets started March on a positive note. However, the five-day rally in European markets is losing steam. This may halt the ongoing rally on Indian bourses. Correcting 10 percent in dollar terms, Indian stocks soared during the week.
Indian stock market is one of the worst sufferers among the global financial markets. During the past few sessions, several global markets gained momentum. Positive US economic data and support from global central banks have been propelling global financial markets upwards.
Reflecting positive buying binge on Dalal Street, three stocks gained for every one share that declined. Only BSE Realty index closed in red, while all sectoral indices were moving up. Majority of investors are positive and optimistic about India's economic growth with fiscal prudence.
Live Mint further adds that Sensex gained over 1,000 points in just two sessions and this was the highest two-session gain in seven years. Expectations on possible interest rate cut by Reserve Bank of India (RBI) also boosted market sentiment. Heavy short-covering during the two sessions also pushed key indices upwards. Banking stocks were soaring on rate cut predictions.
Market analyst Ambareesh Baliga said "There has been a decent amount of short-covering since yesterday. There was nothing very negative in the budget. There was a sigh of relief, when the unfounded fear of LTCG (long-term capital gain) holding period hike was not announced."
Jayant Manglik, President, retail distribution, Religare Securities, said "Nifty upheld its positive tone for the third successive session. Favorable global cues and news of International Monetary Fund (IMF) projecting a robust growth rate for India, led to a surge on opening. And, FIIs alongside further strengthening in rupee, kept the momentum going."
Tata Steel, L&T, Tata Motors, BHEL and Hindalco were top gainers on Dalal Street. Metals, infrastructure, technology and healthcare stocks witnessed value buying and short covering transactions. Metals stocks were top gainers on buyers' list pushing NSE Metal Index up over five percent, according to Money Control.
Improved risk appetite in China further added to the investor confidence. The benchmark 30-share Sensex on Thursday ended at 24,607 up 364 points, or 1.5 per cent, while the Nifty 50 added 107 points, or 1.45 per cent to settle at 7,475.60 points. The Indian markets are predicted to pause this weekend on Friday after surging for three sessions.
Join the Conversation