Sensex extends gains, reclaims 32,000-mark on F&O expiry

Sensex rallied in early trade led by gains in HDFC twins, ITC and Reliance Industries amid positive cues from global markets.
Sensex rallied

Mumbai, May 28 (PTI) Benchmark indices defied gravity for the second straight session on Thursday as expiry of May series derivatives contracts triggered across-the-board buying amid firm global cues.

The 30-share BSE Sensex rallied 595.37 points or 1.88 per cent to finish at 32,200.59. Similarly, the broader NSE Nifty climbed 175.15 points or 1.88 per cent to 9,490.10.

L&T was the top gainer in the Sensex pack, spurting 6.17 per cent, followed by Hero MotoCorp, IndusInd Bank, HDFC Bank, Maruti, HDFC, Tata Steel and ICICI Bank.

ITC, SBI and Bharti Airtel were the only laggards, slipping up to 0.83 per cent.

Benchmarks witnessed a broad-based rally on account of short-covering by market participants as May series futures and options (F&O) contracts expired at the end of the session, analysts said.

Further, domestic investors took positive cues from most global markets amid optimism over the reopening of major economies across the world.

“A huge EU stimulus plan provided a boost to European shares while Asian shares were affected by the US-China diplomatic issues. Indian markets are banking on continued resumption of economic activities, inspite of still high number of new infections.

“Further stimulus measures are also expected to boost demand in the economy and help the most impacted sectors to recover. Market is rising on the back of expectations while there has been little change in ground realities,” said Vinod Nair, Head of Research at Geojit Financial Services.

All sectoral indices ended on a positive note, with BSE capital goods index surging 5.11 per cent, followed by auto, industrials, finance, realty, bankex and metal.

Broader BSE mid-cap and small-cap indices rallied up to 1.42 per cent.

Global equities remained buoyant on economic recovery hopes, with US’ Dow Jones closing above the 25,000-level for the first time since March.

Benchmarks in Shanghai and Tokyo ended with gains, while Hong Kong and Seoul settled in the red.

Stock exchanges in Europe rose up to 1 per cent in opening trade.

International oil benchmark Brent crude futures rose 0.92 per cent to USD 34.92 per barrel.

On the currency front, the rupee settled 5 paise down at 75.76 against the US dollar.

Source: PTI

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