Stock markets end day's session in green: Sensex up over 500 points, Nifty nears 9,500; Zee, Eicher Motors top gainers
Sensex hit a high of 32,267.23 points during the day ahead of the expiry of May derivatives contracts. It finally ended 595.37 points or 1.88 percent higher at 32,200.59.
Continued value buying in leading banking stocks and shortcovering by market participants ahead of month derivatives expiry led the market to post strong rally for the second consecutive trading session. The strong trend in the US and European markets amid optimism of reopening of economies also supported market gains.
#MarketAtClose | Market gains for 2nd straight day with frontline indices up 2% each; Sensex & Nifty end at 1-mth closing highs, Nifty Bank at a 2-wk high as Nifty gains 175 points to 9,490 & Sensex 595 points to 32,201 pic.twitter.com/tMgdK69cfd
— CNBC-TV18 (@CNBCTV18Live) May 28, 2020
Extending its gains for the second session, the Sensex hit a high of 32,267.23 points during the day ahead of the expiry of May derivatives contracts. It finally ended 595.37 points or 1.88 percent higher at 32,200.59.
Similarly, NSE Nifty jumped 175.15 points or 1.88 percent to 9,490.10.
The rally was broad-based as all sectoral indices ended in green. The market ended the session with 1.9 percent high supported by banking, auto and metal indices. Zee Entertainment and Eicher Motors were the top gainers while ITC and Wipro were the top laggards for the today session.
Sumeet Bagadia, Executive Director, Choice Broking, said, "Nifty ended shy of 9,500 as we have seen good rally in auto and banking sector. On stock front, Zee Entertainment, Eicher Motors, L&T, Hero MotoCorp and IndusInd Bank were among major gainers while losers included Wipro, Cipla, JSW Steel, BPCL and ITC. Technically, the index has started to trade with positive crossover which is a bullish sign. Furthermore, the momentum indicator RSI and MACD both are showing positive crossover which points out strength in the index. AT present levels, the index is having good support level at 9,100-9,000 and facing resistance at 9,600-9,650 levels."
Investors will keep a close eye on the factors such as development related to economic lockdown, coronavirus situation in red zone areas and the US-China tension on Hong Kong issue.
Paras Bothra, President of Equity Research, Ashika Stock Broking, said, "Domestic markets scaled higher for the second day on the trot mirroring firm global cues amid continued optimism about the reopening of businesses and progress in vaccine development. Volatility was however expected to be higher during the day as it marked the F&O expiry, however it was not the case and markets scaled higher led by buying across all sectors. At close, the Sensex was up 595.37 points or 1.88% at 32200.59, and the Nifty was up 175.15 points or 1.88% at 9490.10.
Domestic investors took positive cues from most global markets amid optimism over the reopening of major economies across the world.
Manish Hathiramani, Index Trader and Technical Analyst, Deen Dayal Investments said, "The markets ended the monthly expiry of May on a positive note, not giving up any of its gains which is a good indication of what lies ahead. Every dip now becomes an opportunity to buy or go long. We should expect levels closer to 9700 during the course of the June expiry. As long as we can stay above the levels of 9000, we are in a medium-term bull market."
Deepak Jasani, Head Retail Research, HDFC Securities said, "The equity markets ended the May F&O series on a firm note on Thursday. It clocked its second straight day of gains. The NSE Nifty 50 index ended just below the 9,500 mark at 9,490, up by 1.9 percent. Firm European markets and forecast by IMD that the southwest monsoon is expected to reach the Kerala coast around June 1 (vs its earlier forecast of a week’s delay) improved sentiments. Media, Engineering/Capital Goods, Auto and BFSI stocks did well. Asian markets reacted from highs on Thursday as worries over the political turmoil in Hong Kong continue to overshadow hopes of a post-pandemic recovery. Chinese lawmakers approved a proposal for new national-security legislation in Hong Kong, defying President Donald Trump," Jasani said.
Rupee settles 5 paise lower against dollar
The rupee on Thursday settled 5 paise down at 75.76 against the US dollar amid escalating tension between the US and China.
Forex traders said the rupee traded in a narrow range as positive domestic equities and improving risk appetite were offset by a flare-up in US-China tensions, according to PTI.
At the interbank forex market, the rupee opened weak at 75.90, but pared most initial losses and finally settled at 75.76 against the US dollar, down 5 paise over its last close. It had settled at 75.71 against the US dollar on Wednesday.
During the session, the local unit witnessed an intra-day high of 75.69 and a low of 75.90.
The dollar index, which gauges the greenback's strength against a basket of six currencies, rose by 0.02 percent to 99.07.
--With inputs from agencies
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