NEW DELHI: Equity indices surged to fresh all-time highs on Thursday tracking a firm trend in global markets.
Extending its rally to the third straight day, the 30-share BSE benchmark rallied 762.10 points or 1.24 per cent to settle at 62,272.68, its record closing peak. During the day, it jumped 901.75 points or 1.46 per cent to its lifetime high of 62,412.33.
The broader NSE Nifty gained 216.85 points or 1.19 per cent to end at 18,484.10. During the day, it hit its 52-week high of 18,529.70, higher by 262.45 points or 1.43 per cent.
From the sensex pack, HCL Technologies, Infosys, Wipro, Power Grid, Tech Mahindra, Tata Consultancy Services, Hindustan Unilever, HDFC, HDFC Bank and Mahindra & Mahindra were among the major winners.
Bajaj Finserv, Tata Steel, Bajaj Finance and Kotak Mahindra Bank were the laggards.
Here are the top reasons for market gains:
Asian markets rallied Thursday and the dollar weakened further after minutes from the Federal Reserve's latest policy meeting suggested it could slow the pace of its rate hikes.
The news provided traders with a cushion against concerns about surging Covid-19 cases in China that have fanned speculation authorities will revert to lockdowns and other economically debilitating measures to fight the outbreak.
The developments allowed Wall Street traders to head off to their Thanksgiving break with a spring in their step, the S&P 500 ending at a two-month high as they finally see a glimmer of light at the end of the tunnel after a painful year.
* IT, financials surge
Sensex rally was led by large-caps, mainly the HDFC twins, Infosys, TCS and Reliance. Strong buying was witnessed in IT segment with Nifty IT index surging the most at 2.63 per cent, tracking overnight gains in tech-heavy Nasdaq Composite following the Fed minutes. During the session the index rose to an over three-month high.
Continuing their good performance, banking and financial stocks surged today as well. While financial services gained 1.3 per cent on the NSE, PSU Banks surged nearly 1 per cent.
* Dovish Fed minutes
Minutes from the Fed's November rate-setting meeting showed on Wednesday, a "substantial majority" of policymakers agreed it would "likely soon be appropriate" to slow the pace of rate hikes.
The minutes indicated several officials backed the need to moderate the pace of rate hikes, even as some underscored the need for a higher terminal rate. This adds weight to expectations the central bank will raise rates by 50 basis points next month, ending a run of jumbo 75 basis point increases.
* Oil prices fall
Oil held steady as the European Union considered a higher-than-expected price cap on Russian crude and signs of challenges to demand increased.
West Texas Intermediate hovered around $78 a barrel after losing almost 4% in the previous session, with volumes likely to be thin due to a US holiday.
Whereas, Brent crude futures dipped 50 cents, or 0.6%, to $84.91 a barrel.
Crude has tumbled this month, unraveling the gains made in October after the Organization of Petroleum Exporting Countries and its allies decided to reduce production.
* Rupee gains
The rupee appreciated 30 paise to close at 81.63 (provisional) against the US dollar on Thursday as a weak greenback in the overseas market.
Forex traders said the dollar fell in international trade post the weak US data and dovish Fed minutes.
"Rupee continued to trade in a narrow range and volatility remained low in the past few sessions. Euro and pound are trading higher after the Fed maintained a less hawkish stance in its meeting minutes released on Wednesday," said Gaurang Somaiya, Forex & Bullion Analyst, Motilal Oswal Financial Services.
* Dollar at 3-month low
World shares touched a two-month high and the dollar swooped towards a three-month low on Thursday.
MSCI's 47-country index of world stocks touched its highest since mid-September, while German and British government bond yields, which drive Europe's borrowing costs, fell to their lowest since October and September respectively.
MSCI's 47-country index of world stocks touched its highest since mid-September, while German and British government bond yields, which drive Europe's borrowing costs, fell to their lowest since October and September respectively.
* F&O Expiry
Today being the last Thursday of this month, it was the expiry of November's derivative series. Hence, strong buying was witnessed amid short covering by traders.
(With inputs from agencies)
