A day after falling more than a percent, domestic market benchmarks clocked substantial gains on August 30 with the Sensex and the Nifty rising almost 3% in light of broadly positive global cues.
S&P futures climbed by a percent, following gains in the European shares as sentiment improved after a fresh round of heavy selloff after Fed Chair Jerome Powell's hawkish speech at the Jackson Hole conference on August 26.
The fall in crude oil prices and the rupee's rise against the dollar also improved sentiment. Brent Crude traded 2% lower while the rupee ended 51 paise higher at 79.46 per dollar.
Sensex opened 287 points higher at 58,259.85 against the previous close of 57,972.62 and jumped as much as 1,627 points in intraday trade to 59,599.78.
The 30-share pack, eventually, closed with a stellar gain of 1,564 points, or 2.70%, at 59,537.07 while the Nifty50 settled 446 points, or 2.58% higher at 17,759.30.
All stocks of the Sensex index ended in the green with shares of Bajaj Finserv, Bajaj Finance, IndusInd Bank, Tech Mahindra and ICICI Bank as the top gainers, rising between 4-5%.
BSE Midcap and Smallcap indices ended 1.97% and 1.40% higher, respectively.
As many as 220 stocks, including ICICI Bank, ITC, Mahindra & Mahindra, Bank of Baroda, Coal India and Federal Bank, hit their fresh 52-week highs in intraday trade on BSE.
Among the sectoral indices, realty, bank and finance rose more than 3% each while power, oil & gas, utilities and auto indices rose up to 3%.
The overall market capitalisation of BSE-listed firms jumped to ₹280.2 lakh crore from ₹274.6 lakh crore on August 29, making investors richer by ₹5.6 lakh crore in a single day.
"Indian markets bounced back with renewed vigour after a sharp fall led by the inflation and interest rate rhetoric from the US, a day before. Though India can't decouple with the rest of the developed and emerging markets, there is a strong expectation of relative outperformance on the back of improved macros, robust trend in most of the high-frequency indicators, progress and coverage of monsoon, lower commodity prices, improvement in credit growth, the expectation of big festive demand after a long covid induced slowdown, capex roadmap by public and private sector and improvement in corporate profitability," said Devang Mehta, Head – Equity Advisory, Centrum Wealth.
"Growing domestic investor community which has started to believe in the long-term equity cult plus the return of foreign institutional investors, make India a market to invest in. There will be days of heightened volatility due to a number of moving parts, but it has to be utilized as an opportunity to buy in adversity," Mehta added.
Technicals
Santosh Meena, Head of Research, Swastika Investmart said today's powerful rally could be attributed to delivery-based buying by the FIIs and short covering in the F&O market. Rupee also witnessed a sharp appreciation against the USD despite elevated crude oil prices which is a clear indication of FIIs' interest in the Indian equity market.
"The market is heading towards the festive season on an exhilarating note and there is a high probability that the Nifty and Sensex may hit new highs ahead of Diwali. The downside is protected near 200-DMA of 17,000," said Meena.
Rupak De, Senior Technical Analyst at LKP Securities observed a strong rally took Nifty above the recent consolidation sending the 50 EMA above 200 DMA. The RSI on the other hand is still in a bearish crossover. The trend after today's massive movement looks positive. Over the short term, the index may move towards 18,000-18,100. On the lower end, support is visible at 17,500, said De.
Key market data
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