Sensex surges 1,000 points, banking and heavyweight stock gain

Mumbai, June 26 (IANS) The Indian stock markets closed on a strong note on Thursday, with benchmark indices Sensex and Nifty surging over 1 per cent each, led by gains in banking and heavyweight stocks.

The benchmark index reflected strong investor confidence, underpinned by the apparent stability of the Middle East ceasefire, which has eased concerns over potential supply chain disruptions.

The Sensex jumped 1,000.36 points, or 1.21 per cent, to settle at 83,755.87. During the session, the index touched an intra-day high of 83,812.09 and a low of 82,816.26.

The Nifty also gained 304.25 points, or 1.21 per cent, to close at 25,549.00. It hit an intra-day high of 25,565.30 and a low of 25,259.90 during the day.

"Nifty has given a decisive move above the recent consolidation on the daily chart, indicating growing optimism among traders and investors,” Rupak De of LKP Securities said.

“Now that the index has broken above the consolidation zone, we continue to maintain our bullish view going forward,” he added.

Among the Nifty stocks, Shriram Finance, Tata Steel, Bharti Airtel and Hindalco Industries were the top gainers, rising between 2.48 and 3.69 per cent.

On the other hand, Dr Reddy's Laboratories, Tech Mahindra, Wipro, SBI, and Hero MotoCorp were the top laggards, slipping between 0.45 and 1.31 per cent.

In the broader markets, the Nifty Midcap100 and Nifty Smallcap100 indices ended lower, falling 0.59 per cent and 0.42 per cent, respectively, indicating some pressure in mid- and small-cap stocks.

Banking stocks also witnessed strong buying. The Bank Nifty index touched an intra-day high of 57,263.45 and closed at 57,206.70, up 1.03 per cent.

Among sectoral indices, all major indices except Realty, IT, and Media ended in the green.

Nifty Metal was the top performer, gaining 2.31 per cent. This was followed by gains in Nifty Private Bank, Financial Services, and Oil & Gas indices, each rising over 1 per cent.

Meanwhile, Rupee gained over 33 paise to settle at 85.75, buoyed by a sharp drop in the dollar index below the 97.00 mark.

“Falling crude prices and a weaker dollar provided strong support to the rupee. With global risk sentiment improving and the potential for continued fund inflows, the rupee may head towards 85.25 in the coming days," Jateen Trivedi of LKP Securities mentioned.

“Gold remained range-bound as dollar index weakness provided support, while the Federal Reserve’s stance of no immediate rate cuts weighed on sentiment,” Trivedi stated.

He added that MCX Gold is expected to trade within a range of Rs 95,500 to Rs 98,500 in the near term.

--IANS

pk/na