The Indian stock market opened on a firm note and stayed that way right till the end of the session on Thursday thanks to positive global cues, after the U.S. Federal Reserve left its policy rates unchanged yesterday.
After Wall Street ended higher overnight, Asian markets traded firm today and major European market moved up as well as concerns about interest rates in the world's largest economy eased.
The BSE benchmark Sensex ended up 265.71 points or 0.93% at 28,773.13, nearly 100 points off a high of 28,871.92 it had touched in early trades. The Nifty50 of the National Stock Exchange closed up 90.30 points or 1.03% at 8867.45, slightly off the day's high of 8993.35.
Aurobindo Pharma moved up 6% on fairly strong volumes. The stock is up after the company announced that it has received tentative approval for Dolutegravir 50mg from USFDA. The drug is used for the treatment of HIV.
Hindalco, Bank of Baroda, IndusInd Bank, State Bank of India, Yes Bank, Eicher Motors, ACC, Adani Ports, Tata Steel and Hero Motocorp gained 2% - 3.5%.
BPCL, Tata Motor DVR, Larsen & Toubro, NTPC, ICICI Bank, Asian Paints, BHEL, HDFC, Power Grid Corporation, Maruti Suzuki, Bharti Airtel, Reliance Industries, Tata Motors and Grasim Industries moved up 1.3% - 2%. Cipla, ONGC, HDFC, Sun Pharmaceutical Industries and Bajaj Auto also posted notable gains.
Tech Mahindra, Axis Bank, Lupin, Tata Consultancy Services, Coal India and Idea Cellular are down 0.75% - 1.5%.
With several midcap and smallcap stocks too moving higher, the market breadth was quite strong.
In economic news, data released by the Reserve Bank of India after trading hours on Wednesday showed that India's current account deficit narrowed to $0.3 billion or 0.1% of GDP in the June 2016 quarter, significantly lower than CAD of $6.1 billion or 1.2% of GDP in the June 2015 quarter. The contraction in the CAD was primarily on account of a lower trade deficit.
In a significant move, the Indian government today named Chetan Ghate, Pami Dua and Ravindra H Dholakia as members on interest-rate setting Monetary Policy Committee (MPC).
The committee, which will take over the job of setting interest rate, will have six members, with the government and the Reserve Bank of India appointing three persons each. The Appointments Committee of the Cabinet cleared the three experts as members on the MPC for a period of four years. RBI nominees will include, governor, a deputy governor and one more person from the central bank.