MUMBAI — Indian equity markets closed higher for a second straight session Thursday, with benchmark indexes gaining more than 1% as investors bought pharmaceutical, healthcare, metal and banking stocks amid expectations of policy steps to address currency volatility.
The Sensex rose 789.74 points, or 1.06%, to close at 75,398.72. The Nifty advanced 277 points, or 1.18%, to settle at 23,689.60.
During the session, the Sensex climbed as much as 1,073 points, or 1.43%, to 75,681.88, while the Nifty rose as much as 364 points, or 1.55%, to 23,777.20. At the day’s low, the Sensex slipped 82 points, or 0.11%, to 74,526.77, while the Nifty touched 23,426.55, up 14 points from the previous close.
Pharmaceutical and healthcare stocks led sectoral gains. The Nifty Pharma index rose 2.74%, while the Nifty Healthcare Index gained 2.56%. The Nifty Metal index advanced 2.04%, supported by firmer global prices and improving demand expectations from China.
Banking shares also moved higher, with the Nifty PSU Bank index rising 1.37% and the Nifty Private Bank index gaining 1.16%.
Technology stocks were the main drag on the market. The Nifty IT index fell 2% as HCLTech, Infosys, Tata Consultancy Services and Tech Mahindra came under selling pressure.
Market analysts said domestic equities recovered from intraday lows despite weakness in the rupee and elevated crude oil prices. They said sentiment was supported by expectations that policymakers could take steps to stabilize the currency, including easing tax treatment on bonds for foreign investors and tightening rules under the Liberalised Remittance Scheme to curb capital outflows.
Global cues also helped investor sentiment, with optimism following a meeting between U.S. President Donald Trump and Chinese President Xi Jinping raising hopes for improved economic cooperation.
The rupee remained volatile during the session. The currency initially weakened toward 95.95 before recovering sharply toward 95.60 following reports of a proposal to lower taxes for foreign investors as part of efforts to support capital inflows and stabilize the currency. (Source: IANS)
