Positive global cues along with rising risk-on sentiment buoyed India's key equity indices -- S&P BSE Sensex and NSE Nifty50 -- on Thursday.However, continuous selling by FIIs capped the day's gains. Initially, both the indices opened with an upgap and rose for the third consecutive session.Globally, Asian shares were modestly higher on Thursday after stocks advanced on Wall Street with encouraging reports about the potential impact of the Omicron variant of coronavirus and stronger US economic data.Similarly, European stock markets had a higher but fairly cautious opening, building on gains made on late Wednesday's session.On the domestic front, volumes were lower than the recent average. Amongst sectoral indices, realty, power, oil and gas, IT and FMCG gained the most, whereas telecom and metals lost the most.Consequently, the S&P BSE Sensex traded at 57,315.28 points, up 0.68 per cent from its previous close.
Similarly, the broader 50-scrip Nifty at the National Stock Exchange (NSE) rose to 17,072.60 points, up 0.69 per cent from its previous close."Nifty rose with an upgap but formed a doji after a rise, suggesting indecision on the part of the traders at higher levels. The advance decline ratio continued to remain positive," said Deepak Jasani, Head of Retail Research, HDFC Securities."Till 17,119 is crossed, there would remain a possibility of a correction of the recent rise. 16,936-16,971 on the downside remains a support band," he added.According to Siddhartha Khemka, Head of Retail Research, Motilal Oswal Financial Services: "The relief rally might continue for some more time. FII selling has reduced sharply over the last few days as they enter into holiday mood."However, volatility cannot be ruled out on account of potential risk from the Omicron variant and fragile global cues."Vinod Nair, Head of Research at Geojit Financial Services, said: "Domestic bourses continued to trade firm, mirroring an upbeat mood in the global markets led by gains in realty, financials and IT stocks, while the broader markets strengthened."US third quarter GDP expanded at an annualised 2.3 per cent, which is higher than expected. Reports on reduced risk of hospitalisation and severity of Omicron as compared to the Delta variant has supported the upward momentum along with favourable US economic data."Rohit Singre, Senior Technical Analyst at LKP Securities, said: "Index has shifted its support to 17,000-16,900 zone and holding the above said levels one can expect a positive moment in index in coming sessions also. Any dip near said levels will be buying opportunity, while immediate hurdle is placed at 17,120-17,200 zone."