The market rallied on Thursday, with sharp gains in auto stocks reaching record highs after Titan pointed to a strong recovery in demand in the second quarter. The S&P BSE Sensex was up 0.99 per cent at 59,775.55 and the NSE Nifty 50 was up 0.97 per cent at 17,816.25.
In the previous session, the index fell 1 percent each as global oil prices triggered inflationary concerns.
On Thursday, most Asian markets soared, reflecting overnight gains on Wall Street after US politicians appeared close to a deal to avoid debt installments, while Russia’s gas supplies and oil prices topped several-year highs, helping to stabilize global markets.
“Global references have improved – domestically things are looking with a lock, and we can expect this momentum to remain as long as there are new domestic stimuli,” said Narendra Solanki, head of stock research (base) at Anand Rathi Investment Service.
Domestic investors are now waiting for the results of the central bank’s policy meeting and another corporate earnings period will begin on Friday.
Titan topped the benchmark index on Thursday after the jewelry maker said it was up 9.3 percent and expects strong revenue growth in the second quarter.
The Nifty’s auto index rose 3.83 percent to a seven – month high, with all components of the sub – index trading higher. Tata Motors advanced 9.4 percent.
Among the major sub-indices, the Nifty’s realty index advanced the most, rising 4.81 per cent to an 11-year high. Real estate developer Sofa, up 13.25 percent, was profitable in the sub-index.
Shares of Reliance Industries rose 1.5 per cent, prompting its retailer to launch a license agreement with US chain 7-Eleven Inc in India.