New Delhi: The Sensex vaulted 629 points while the Nifty recaptured the 11,400-mark on Thursday as positive macroeconomic data and and renewed hopes of US stimulus turbocharged investor sentiment.
A sharp jump in the rupee — which soared 63 paise against the US dollar — and the government’s Unlock 5 guidelines added to the bullish mood, traders said.
The 30-share BSE Sensex soared 629.12 points or 1.65 per cent to close at 38,697.05, led by banking and finance stocks.
The broader NSE Nifty advanced 169.40 points or 1.51 per cent to finish at 11,416.95.
IndusInd Bank was the top gainer in the Sensex pack, zooming 12.41 per cent, followed by Bajaj Finance, Axis Bank, ICICI Bank, Tech Mahindra, Bajaj Auto, Bajaj Finserv and Kotak Bank.
Only five index constituents closed in the red — ITC, NTPC, Reliance Industries, Titan and ONGC, shedding up to 0.52 per cent.
Global equities rallied on expectations of the US announcing another massive stimulus in the next few days to shore up the coronavirus-hit economy.
On the macroeconomic front, GST collections reached Rs 95,480 crore in September, the highest level so far this fiscal, indicating revival of economic activities.
Besides, India’s manufacturing sector activity improved for the second straight month in September and touched an over eight-and-a-half-year high supported by accelerated increases in new orders and production, even as firms reduced staff numbers.
The headline seasonally adjusted IHS Markit India Manufacturing Purchasing Managers’ Index (PMI) increased from 52.0 in August to 56.8 in September — highest since January 2012.
During the holiday-truncated week, the Sensex advanced 1,308.39 points or 3.49 per cent, and the Nifty rallied 366.70 points or 3.31 per cent.
Domestic markets will remain closed on Friday on account of ‘Gandhi Jayanti’.
“The announcement of Unlock 5.0 guidelines gave the markets a temporary boost, and benchmark indices closed up by more than 1.5 per cent. Positive data indicating resumption and expansion in the pace of the country’s factory output also supported the markets. Global indices were also positive on renewed hopes of a US stimulus package which can also ensure continued liquidity for emerging markets like India.
“Rising cases of infections, seemingly high valuations and geopolitical tensions are still causes for worry for the markets. Next week cues will again mainly depend on how global markets close out this week,” said Vinod Nair, Head of Research at Geojit Financial Services.
The Union Home Ministry on Wednesday issued new guidelines for permitting more activities in areas outside the containment zones that include opening up cinemas, theatres and multiplexes with up to 50 per cent of their seating capacity from October 15.
BSE bankex, finance, telecom, realty, teck and IT indices rallied up to 3.73 per cent, while energy and consumer durables indices ended lower.
Broader BSE midcap and smallcap indices rose up to 0.73 per cent.
Meanwhile, Tokyo Stock Exchange halted trading for the day following a technical glitch. Markets in Shanghai, Hong Kong and Seoul were closed for holidays.
Indices in Europe were trading on a positive note in early deals.
International oil benchmark Brent crude was trading 0.76 per cent lower at USD 41.98 per barrel.
The rupee strengthened by 63 paise to close at 73.13 against the US dollar.