A strong rally in the global equity markets on account of a dovish stance by the U.S. Federal Reserve propelled the Indian benchmark indices on Thursday with banking and auto majors registering strong gains amid an overall positive trend.
The 30-share Sensex gained 488.89 points or 1.25% to close at 39,601.63. As many as 26 of the 30 constituents of the benchmark gained ground with stocks such as Yes Bank, Indusind Bank, ICICI Bank, Maruti Suzuki India, Tata Motors and Sun Pharmaceutical leading the gainers pack. The overall strong trend was further corroborated with more than 1,500 gainers as against around 1,000 declines. Some of the broader indices such as BSE Midcap and Sensex 50 even outperformed the benchmark Sensex. The 50-share Nifty gained 140.30 points or 1.20% to close at 11,831.75. Incidentally, the India VIX index, which was on the rise in the recent past, lost nearly 5% on Thursday.
“The gains came on the back of positive global cues as a dovish Fed opened the door to further rate cuts,” said Deepak Jasani, Head - Retail Research, HDFC Securities. Meanwhile, the rupee rose 24 paise to close at a one-week high of 69.44 against the U.S. dollar.
