MUMBAI, Dec 5: The benchmark BSE Sensex continued its upward trend for the fifth consecutive day, rising by 809 points in a volatile trading session on Thursday, just a day before the RBI’s policy review announcement.
The 30-share BSE Sensex jumped by 809.53 points, or 1 percent, closing at 81,765.86. During the day, it reached a peak of 82,317.74, climbing 1,361.41 points (1.68 percent), before experiencing profit-taking by investors in the pre-close session.
The NSE Nifty also saw a significant rise of 240.95 points, or 0.98 percent, ending at 24,708.40.
Market analysts noted that the indices maintained their positive trend due to increased buying in IT stocks and a strong rally in the US markets.
Within the 30-share Sensex index, notable gainers included Tata Consultancy Services, Titan, Infosys, Bharti Airtel, Bajaj Finance, ICICI Bank, HCL Technologies, and Tech Mahindra.
Conversely, NTPC and Asian Paints lagged behind.
“The Dow surpassing 45,000 for the first time is a strong indicator of US market strength, supported by robust growth and declining inflation,” commented V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
“The remarks from Fed Chair Powell indicating that the ‘economy is in remarkably good shape’ provide a boost for US bulls,” he added.
The BSE midcap index saw an increase of 0.27 percent, while the smallcap index rose by 0.16 percent.
A total of 2,141 stocks advanced, while 1,825 declined, with 117 remaining unchanged on the BSE.
Among the sectoral indices, BSE Focused IT experienced the largest increase at 1.96 percent, followed by teck at 1.92 percent, IT at 1.81 percent, and telecommunications at 0.95 percent. Bankex and consumer durables also showed gains of 0.68 percent and 0.66 percent, respectively.
In contrast, BSE services and real estate sectors saw declines.
Over the past five trading days, the BSE benchmark has surged by 2,722.12 points, equivalent to a 3.44 percent increase.
Analysts pointed out that the shift of Foreign Institutional Investors (FIIs) to a buying position is favorable for the market, particularly for large caps. On Wednesday alone, FIIs purchased equities worth Rs 1,797.60 crore, according to exchange data.
On Friday, the RBI Monetary Policy Committee, led by Governor Shaktikanta Das, is set to announce its policy review.
“The recent market rally has already anticipated potential support from the RBI, making the market’s reaction to Friday’s findings critical. While the IT and banking sectors continue to drive the index higher, broader sector participation will be crucial for sustaining this rally,” said Ajit Mishra, SVP of Research at Religare Broking Ltd.
In Asian markets, Tokyo and Shanghai finished higher, while Seoul and Hong Kong closed lower. European markets were trading in the positive zone. US markets also ended on a high note on Wednesday.
The global oil standard, Brent crude, increased by 0.53 percent to reach USD 72.68 a barrel.
On Wednesday, the BSE barometer rose by 110.58 points, or 0.14 percent, closing at 80,956.33, while the Nifty edged up by 10.30 points, or 0.04 percent, finishing at 24,467.45. (PTI )
