Bank stocks rose sharply by up to 12 per cent after the government's move to withdraw 500 and 1,000 rupee notes from circulation as part of black money crack down
Market found its winning ways, on Thursday,as Sensex rose over 265 points and Nifty reclaimed the key 8,500-level on emergence of rally in bank stocks in anticipation of rise in deposits after withdrawal of high value notes and investors coming to terms with US poll result.
The trading momentum in domestic markets accelerated tracking the overnight recovery in the US market and later on the Asian bourses. Global investors are believed to have consoled themselves by factoring in Donald Trump's pro-business policies, also resonating in domestic market trading momentum.
On domestic bourses, bank stocks rose sharply by up to 12 per cent after the government's move to withdraw 500 and 1,000 rupee notes from circulation as part of black money crack down.
Vinod Nair, Head of Research, Geojit BNP Paribas Financial Services Ltd, said, "The surprising US election outcome has come as a one-time obstacle as the 'BREXIT' referendum... The market moved ahead keeping aside the notional excitement. Some caution can be expected in the near-term. Midcaps and banks can continue to rally since prices are still cheaper and benefit from demonetisation."
Hectic short-covering and value-buying were the order of day, besides the market was well supported by quarterly earnings of key corporates.
Buying was led by metal, banking, telecom, utilities, power and financial sectors, helped by second-line shares of midcap and smallcap companies.
While, IT, auto and consumer durable segments saw a selling pressure.
The 30-share Sensex opened gap-up at 26,605.05 and hovered between 27,743.46 and 27,457.05 before concluding at at 27,517.68, showing a gain of 265.15 points, or 0.97 per cent. The gauge had dropped 338.61 points on Wednesday.
The Nifty also gained 93.75 points, or 1.11 per cent, to end at 8,525.75, after trading between 8,598.45 and 8,510.70.
Meanwhile, Foreign portfolio investors (FPIs) sold shares worth Rs 2,095 crore yesterday, as per provisional data.
Overseas, Asian markets ended higher to join a global rebound on speculation that Donald Trump will pursue business-friendly policies.
European shares also advanced led by miners and banks amid encouraging results from companies such as Vivendi supporting the broader market.
Photograph: PTI Photo
