Short covering, along with positive hopes of the ruling BJP's win in the crucial two-phased Gujarat assembly elections, erased the day's entire losses and lifted the key Indian equity indices to close in the green on Thursday.On a closing basis, the wider Nifty50 of the National Stock Exchange (NSE) edged higher by 59.15 points or 0.58 per cent to 10,252.10 points.The barometer 30-scrip Sensitive Index (Sensex) of the BSE closed at 33,246.70 points -- up 193.66 points or 0.59 per cent -- from its previous close.However, the BSE market breadth was bearish -- 1,526 declines and 1,092 advances.In the broader markets, the S&P BSE mid-cap index was up by 0.09 per cent, whereas the small-cap index inched down 0.32 per cent."Markets rallied on Thursday to close with healthy gains after two sessions of weakness," Deepak Jasani, Head, Retail Research, HDFC Securities, told IANS."After a weak morning session ahead of the exit poll results of the assembly elections in Gujarat and Himachal Pradesh to be announced later in the day, buying emerged in the afternoon session from the Nifty-lows of 10,129 as investors digested the US Federal Reserve's decision of raising interest rates for the third time this year," he added.
Early on Thursday morning (India time), the US Federal Reserve raised the benchmark interest rates for the third time this year and maintained the forecast of three more rate hikes in 2018, as the economy and job market continued solid growth.Vinod Nair, Head of Research, Geojit Financial Services, said: "Market was volatile ahead of Gujarat exit poll result later in the day which directed the indices to trade between gains and losses."However, covering of short position towards the closing helped the market to end in a positive note. US Fed's comment on three more hikes in 2018 amid benign inflation also impacted investors' sentiments."The Indian rupee strengthened by 10 paise to close at 64.34 against the US dollar from its previous close at 64.44.On the macro-data front, official data released during market hours revealed that an exponential rise in food and fuel prices -- especially those of onions and diesel -- pushed India's annual rate of inflation based on wholesale prices higher to 3.93 per cent for November.Provisional data with the exchanges showed that foreign institutional investors purchased scrips worth Rs 232.17 crore while domestic institutional investors divested in stocks worth Rs 374.21 crore.
Sector-wise, the BSE S&P banking index rose by 188.67 points, followed by oil and gas index by 159.33 points and auto index by 91.83 points.On the other hand, the S&P BSE consumer durables index fell by 133.91 points, IT index by 4.11 points and industrials index by 1.51 points.Major Sensex gainers on Thursday were: Dr. Reddy's Lab, up 2.34 per cent at Rs 2,313.70; Cipla, up 2.22 per cent at Rs 591; ITC, up 1.87 per cent at Rs 263.90; Mahindra and Mahindra, up 1.36 per cent at Rs 1,431.70; and Axis Bank, up 1.24 per cent at Rs 541.60.Major Sensex losers were: Tata Consultancy Services, down 2.62 per cent at Rs 2,558.55; Sun Pharma, down 0.48 per cent at Rs 514.30; Power Grid, down 0.37 per cent at Rs 200; and Larsen and Toubro, down 0.01 per cent at Rs 1,188.85.