Sensex, Nifty gain ground for second straight session

Firm global trend, domestic cues boost sentiment

A strong global trend, along with positive domestic cues, helped the benchmark equity indices gain significant ground on Thursday.

Investor sentiment improved after the recent correction in crude prices and the World Bank forecast that India would be the world’s fastest-growing economy in the next three years.

Blue chips shine

The 30-share Sensex rose 0.81% to 35,463.08 with Tata Steel, Tata Motors, ICICI Bank, Axis Bank, Asian Paints, Reliance Industries, ONGC and Infosys all gaining more than 1% each.

The side counters continued their rally as well with the BSE Smallcap gaining almost 2% and the BSE Midcap rising 1.4%. Market breadth was strong with close to 2,000 stocks advancing compared to 760 declines. The Nifty settled the day at 10,768.35, rising 0.78%.

“Crude oil prices have cooled down from last month’s high of around $80 per barrel to around $75, which is good news for an oil importing country like India.

“Overall, we believe that markets will continue on the positive trajectory,” said Hemang Jani, head — Advisory, Sharekhan by BNP Paribas.

A dip in crude prices led to an upswing in most Asian markets on Thursday. The overnight Dow Jones and Nasdaq in the U.S. also rose by more than 1% each.

Foreign portfolio investors, who sold more than ₹15,000 crore worth of shares in India cumulatively in April and May, have bought shares worth ₹2,742 crore so far this month.