Mumbai: Bulls finally found their feet on Dalal Street on Thursday. Equity benchmarks snapped three-day losing streak due to broadbased rally triggered by Fed chair Janet Yellen and the US Federal Reserve.
Benchmarks recouped all its losses seen in previous three sessions. The 30-share BSE Sensex surged 390.49 points or 1.49 percent to close at 26637.28 and the 50-share Nifty climbed 117.85 points or 1.50 percent to 7960.55.
The broader markets too participated in the rally with the BSE Midcap and Smallcap indices rising 1.8 percent and 1.6 percent, respectively. Dovish statements from the US Federal Reserve (on Wednesday) triggered a relief rally not only in India but also across the globe.
The latest minutes of a meeting (held on September 16-17) of the central bank hinted that rate hikes in the US will take some time. Asian markets (barring Nikkei) gained 0.3-1.2 percent following rally in US markets while European markets were marginally in green after strong opening.
Back home, Madhya Pradesh on Thursday kicked off its fourth edition of the global investors' summit, to attract billions of dollars in big-ticket projects from global investors and industry heavyweights. The three-day long event was inaugurated by Prime Minister Narendra Modi, who appealed to foreign investors to invest in Madhya Pradesh through the 'Make in India' campaign. He added that foreign investments worth USD 100 billion are knocking India's doors and it is up to the states to lap up as much as they can.
Meanwhile, Facebook's co-founder and CEO Mark Zuckerberg came to India to meet the Prime Minister. He said Facebook is ready to help the government connect nearly 600 villages in India which do not have internet access. Stock in action It was a broadbased rally as all sectoral indices closed in green.
BSE Capital Goods, Realty, Bank, Power, Metal, Oil & Gas, Healthcare and Auto indices surged 1-3 percent. State-run power equipment maker BHEL was the top gainer throughout the session, up 8.4 percent on bagging EPC order worth Rs 7,800 crore for 2x660 MW rating supercritical power project from Tamil Nadu Generation & Distribution Corporation.
Its rival engineering and construction major Larsen and Toubro was up 2.6 percent. Aluminium major Hindalco Industries rallied 6 percent after strong earnings reported by Alcoa in September quarter. ICICI Bank, HDFC, HDFC Bank, State Bank of India, Reliance Industries, Tata Motors, Axis Bank and Tata Steel were other prominent gainers, up 2-3 percent. Drug maker Cipla was up 1 percent on collaboration with Teva Pharma for South African market.
It was a volatile session for Infosys ahead of its second quarter (July-September) earnings that will be announced on Friday morning. Analysts expect 3 percent growth in dollar revenues and do not expect any change in FY15 dollar revenue guidance. CEO Vishal Sikka's strategy will be closely watched. Anything above 3.5 percent growth in dollar revenue in Q2 may spark rally in stock. The scrip closed marginally lower on Thursday.
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