The S&P BSE Sensex rose 158 points, or 0.19%, to close at 85,265.32, while the NSE Nifty 50 advanced 48 points, or 0.18%, to finish at 26,033.75.
IT stocks drove much of the day’s advance. TCS, Tech Mahindra, Infosys, HCL Technologies and Bharti Airtel led the Sensex gainers, each rising between 0.8% and 1.5%.
The Nifty IT index climbed 1.4%, adding to Wednesday’s 0.8% rise, helped by a softer rupee and growing expectations of a U.S. rate cut next week, both tailwinds for software exporters whose dollar revenues gain in local-currency terms.
Financials, however, proved a drag. The sector slipped 0.1% as heavyweight private lenders HDFC Bank and ICICI Bank each dipped about 0.3%. Broader markets were muted, with mid-caps ending flat and small-caps easing 0.2%.
InterGlobe Aviation, the operator of IndiGo, fell 2.4%, extending its slide to a fifth straight session as flight cancellations continued to mount.
Expert views
The domestic markets closed flat amid mixed global cues and caution ahead of the RBI policy, said Vinod Nair, Head of Research at Geojit Investments, adding that early value-driven gains were restrained by a record-low rupee and persistent FII outflows.
“However, lowered expectations of an RBI rate cut supported a mild currency rebound, helping indices stabilise towards the close. IT stocks outperformed, buoyed by renewed optimism around potential Fed rate cuts and favourable currency tailwinds, which strengthened investor appetite for the sector,” said Nair.
Global Markets
Japanese equities outperformed on Thursday, lifting an otherwise mixed session across Asia, as a government bond auction in Tokyo drew the strongest demand in more than six years. The rally helped calm nerves after a sharp selloff in super-long Japanese debt earlier in the week sent yields to record highs and rattled global bond markets.
The Nikkei 225 jumped 2.2%, powered by an almost 12% surge in industrial-robot maker Fanuc Corp. By contrast, MSCI’s gauge of Asia-Pacific shares outside Japan was little changed, held back by declines in South Korea and New Zealand. The U.S. dollar also firmed after slipping to a five-week low.
In early European trading, sentiment appeared firmer: regionwide futures were up 0.6%, with German DAX futures also higher by 0.6% and FTSE futures gaining 0.31%.
