Sensex, Nifty Close 1% Higher on Policy Support Hopes
MUMBAI — Indian equity markets closed higher for a second straight session Thursday, with benchmark indices rising more than 1% each on buying in pharmaceutical, healthcare, metal and banking stocks, along with expectations of policy measures to address currency volatility.
The Sensex closed at 75,398.72, up 789.74 points, or 1.06%, while the Nifty settled 277 points, or 1.18%, higher at 23,689.60. During intraday trading, the benchmarks rose as much as 1.43%, or 1,073 points, to 75,681.88 and 1.55%, or 364 points, to 23,777.20, respectively.
At the day’s low, the 30-share Sensex touched 74,526.77, down 82 points, or 0.11%, from the previous close, while the Nifty hit 23,426.55, up 14 points, or 0.05%.
Among sectors, Nifty Pharma was the top gainer, rising 2.74%, followed by the Nifty Healthcare Index, which advanced 2.56%. The Nifty Metal index climbed 2.04%.
Banking stocks also moved higher, with the Nifty PSU Bank index rising 1.37% and the Nifty Private Bank index gaining 1.16%.
Nifty IT was the top sectoral laggard, falling 2% amid selling pressure in technology stocks. HCL Tech, Infosys, Tata Consultancy Services and Tech Mahindra were among the major IT counters that declined during the session.
Market experts said domestic stocks recovered from intraday lows and ended higher despite weakness in the rupee and elevated crude oil prices.
They said investor sentiment was supported by expectations of possible policy measures to address currency volatility, including steps such as easing tax treatment on bonds for foreign investors and tightening the Liberalized Remittance Scheme to curb capital outflows.
Sentiment was also helped by global cues, including optimism after the Trump-Xi meeting, which raised hopes of improved economic cooperation, experts said.
On the sectoral front, analysts said buying in pharma and healthcare reflected a rotation into defensive pockets, while metal stocks gained support from firm global prices and an improving demand outlook from China.
IT stocks, however, remained under pressure and extended losses during the session.
The rupee traded in a highly volatile range, initially weakening toward 95.95 before recovering sharply to around 95.60 following reports of a proposal to reduce taxes for foreign investors in an effort to support capital inflows and stabilize the currency. (Source: IANS)
