Shillong, September 7: Benchmark indices enjoyed a strong afternoon rally on Thursday, thanks to the performance of PSU and infrastructure stocks, as stated by S. Ranganathan, Head of Research at LKP Securities.
As per IANS, BSE Sensex closed at 66,265.56, marking a 385-point increase, equivalent to a 0.58 percent gain. Simultaneously, the Nifty50 index settled at 19,727.05, up by 116 points or 0.59 percent.
PSU companies, with a market capitalization share of 13.5 percent, have shown remarkable growth compared to just over 9 percent in 2021. This period has witnessed substantial increases in the stock values of several mid-cap state-owned entities, according to Ranganathan.
Late Thursday afternoon saw ETF flows aiding the recovery of large-cap stocks, he further added.
Vinod Nair, Head of Research at Geojit Financial Services, noted that the domestic market initially started with a lackluster performance, influenced by weak global cues. However, as the day unfolded, a decline in US bond yields and crude oil prices injected some positivity into the market.
The most notable optimism was observed in banking stocks. Intriguingly, mid and small-cap stocks maintained investor interest, despite relatively high valuations. Nevertheless, the persistently weak trade data from China continues to cast a shadow over the global market’s outlook, according to Nair.