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D-Street investors richer by Rs 10.8 lakh crore in 3 days as Sensex reclaims 55,000

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Headline indices Sensex and Nifty50 extended extended their winning streak to a third straight day. Globally, planned diplomatic talks between Russia and Ukraine buoyed investors' risk-on sentiment. Back home, investors cheered preliminary data on polls in five states.

D-Street investors richer by Rs 10.8 lakh crore in 3 days as Sensex reclaims 55,000
Indian equity benchmarks extended gains to the third day in a row on Thursday, helped by financial, consumer and auto shares, as planned talks between Ukraine and Russia buoyed global risk-on sentiment. Domestically, incoming data suggesting polls in five states favoured PM Narendra Modi's party lifted investor sentiment.
Both headline indices finished the day up 1.5 percent. The Sensex added 817.1 points to end at 55,464.4 and the Nifty50 settled at 16,594.9, up 249.6 points from its previous close.
The three-day-long winning streak added Rs 10.8 lakh crore to investors' wealth as the market capitalisation of BSE-listed companies rose to Rs 251.9 lakh crore, exchange data showed.
Among blue-chip stocks, Hindustan Unilever, Tata Steel, Grasim, SBI, JSW Steel, Indian Oil and IndusInd -- closing with gains of between 3.3 percent and 5.2 percent -- were the top gainers. On the other hand, Coal India, Tech Mahindra and Dr Reddy's -- declining between 1.2 percent and 3.8 percent -- were the worst hit among the seven laggards in the Nifty50 pack.
Reliance Industries, Hindustan Unilever, the HDFC twins and ICICI Bank were the biggest movers for both main indices.
Investors tracked preliminary data to assess the outcome of Assembly elections in five states -- Uttar Pradesh, Punjab, Uttarakhand, Manipur and Goa -- that are likely to set the tone of the 2024 Lok Sabha polls.
UP Chief Minister Yogi Adityanath looked set for a second term with the BJP crossing the 262-mark in the state.
"Investors further covered their short positions thanks to the state poll results in which the ruling BJP put up a strong show... The market also got a leg up on strong global cues and hopes that talks between the foreign ministers of Russia and Ukraine in Turkey would look at easing conflict between the two sides," said Shrikant Chouhan, Head of Equity Research (Retail) at Kotak Securities.
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"Markets hate uncertainty and the outcome of these state elections will provide policy continuity and stability... As predicted by the exit polls, the market was expecting the BJP to garner a majority in Uttar Pradesh," Devarsh Vakil, Deputy Head of Retail Research at HDFC Securities, told CNBCTV18.com.
"Based on this mandate, the central government will be buoyed to carry out their agenda confidently and look for opportunities to pursue economic reforms," he said.
Barring the Nifty IT, which slipped 0.1 percent, all of NSE's sectoral indices closed above the flatline.
The Nifty Bank was up two percent for the day, with SBI, HDFC Bank, ICICI Bank, Axis Bank and IndusInd rising 1.2-3.5 percent. During the session, the banking index surged as much as 4.6 percent.
The metal index finished near its highest level of the day, up 2.3 percent from its previous close, in tandem with a rise in global commodity prices.
GAIL fell 4.5 percent and ONGC 0.5 percent as crude oil cooled off from recent peaks. Benchmark Brent retreated as much as 15 percent from the previous day's high, having fuelled fears of inflation and aggressive tightening of pandemic-era monetary policy.
The India VIX -- also known as the fear index -- dropped 6.9 percent to 25.6. Last month, Russia's move to invade Ukraine had sent the volatility gauge soaring to as high as almost 34.
Broader markets stayed in the green throughout the day, but gave up about half of their intraday gains. The Nifty Midcap 100 and Smallcap 100 indices rose 0.9 percent and 1.4 percent for the day.
In the midcap and smallcap segments, BSE, Bharat Rasayan, Essel Propack, TCNS Clothing and IOC Chem -- surging around 9-19 percent -- were the top gainers. On the other hand, Orient Refractories, DCM Shriram, Teamlease, Greaves Cotton and Jindal Saw -- down 2-5 percent -- were the top losers.
Overall market breadth remained in favour of the bulls throughout the session, with an advance-decline ratio of more than 2:1 as 1,457 stocks rose on NSE and 626 fell.
Global markets
European shares began the day weaker despite strong gains across Asia and the US. The pan-European Stoxx 600 index was down 1.4 percent at the last count. The UK's FTSE benchmark was down 1.3 percent, France's CAC 2.5 percent and Germany's DAX 2.9 percent.
S&P 500 futures were down 0.8 percent, suggesting a weak start ahead on Wall Street.
Technical View
Kotak Securities' Chouhan is of the view that although the Nifty's short-term formation remains on the positive side, it is likely to consolidate in the 16,400 -16,800 range due to the temporary overbought situation. "For traders, levels of 16,400-16,300 would act as important support, and on the flipside, immediate resistance could be in the 16,800-16,875 band," he said.
Disclaimer: Network18, the parent company of CNBCTV18.com, is controlled by Independent Media Trust, of which Reliance Industries is the sole beneficiary.
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