Analysts said the Nifty can inch toward 26,000 levels in the next couple of weeks, but post Diwali, the continuation of gains hinges on the US-India trade deal.
The NSE Nifty climbed 1% to 25,585, up 261 points. The BSE Sensex advanced 1%, or 862 points, to 83,467.
Nestle India surged 4.8% and emerged as the top gainer in the Nifty pack while Tata Consumer Products and Titan jumped 3.1% and 2.5%, respectively. Axis Bank and Kotak Bank rose over 2% each.
“Earnings for Axis Bank were better in terms of the operating metrics and loan book growth and the same is expected for Kotak Bank as well,” said Sunny Agrawal, Head of Fundamental Equity Research, SBI Securities. “The provisional numbers for Titan were also strong.”
The US Federal Reserve is expected to cut interest rates by 25 basis points which could drive global funds to chase riskier assets among emerging markets, he said.
AgenciesInvestors expect possible trade truce between US and India will help Q2 earnings growth l Hopes of foreign fund inflows fuel rally
“Since India has underperformed in the last 15 months, it could be a value play for them and lead to inflows,” said Agrawal. Foreign portfolio investors (FPIs) bought shares worth a net ₹997.3 crore on Thursday. Their domestic counterparts bought shares worth ₹4,076.2 crore. Out of the 11 sessions in October so far, global investors have been buyers on five occasions.
Foreign flows have changed direction marginally in the last few days and the market seems to be hoping that this is a sign of strong potential inflows, which is supporting the rally, said analysts.
“Auto companies reported strong numbers on account of the festive season and the news around US and India inching closer to a negotiation as per President Trump’s new statement buoyed the markets higher,” said U R Bhat, co-founder & director, Alphaniti.
Most sectoral indices ended higher on Thursday. The Nifty FMCG and realty indices jumped around 2% each. Nifty consumer durables index and auto indices gained 1.5% and 1.3%, respectively. Bank Nifty rose 1.1% and the Nifty Private Bank Index advanced 1.5%. The Nifty Mid-cap 150 and the Small-cap 250 indices advanced 0.5% and 0.4% each on Thursday.
