Benchmark stock indices Sensex and Nifty rebounded to close over 1 per cent higher on Thursday, propelled by buying in index majors Reliance Industries, HUL and Infosys along with an overall positive trend in global markets.
The 30-share BSE benchmark jumped 701.67 points or 1.23 per cent to end at 57,521.06. During the day, it zoomed 971.46 points or 1.70 per cent to 57,790.85 on the expiry of derivatives contracts.
The NSE Nifty rallied 206.65 points or 1.21 per cent to 17,245.05.
Hindustan Unilever Limited, Asian Paints, NTPC, Power Grid, Larsen & Toubro, State Bank of India, Infosys, Axis Bank, and Reliance Industries were among the major gainers in the Sensex pack.
In contrast, Bharti Airtel, M&M, HCL Technologies and HDFC Bank were the laggards.
The rally in domestic stocks was fuelled by gains in global markets. Stock markets in Tokyo, Hong Kong, Shanghai and Seoul ended with healthy gains.
Markets in Europe were trading in the green in the afternoon session. Stocks in the US had ended mostly higher on Wednesday.
The Sensex had tumbled 537.22 points or 0.94 per cent to end at 56,819.39 points on Wednesday. The NSE Nifty declined 162.40 points or 0.94 per cent to 17,038.40 points.
Meanwhile, international oil benchmark Brent crude slipped 0.07 per cent to USD 105.33 per barrel.
Foreign institutional investors continued their selling spree, offloading shares worth Rs 4,064.54 crore on Wednesday, according to stock exchange data.
Rupee settles 4 paise higher at 76.53 against US dollar
The rupee pared initial losses to settle 4 paise higher at 76.53 (provisional) against the US dollar on Thursday, tracking positive domestic equities.
The appreciation bias in the local unit is likely to be capped in the near term amid strong American currency, inflationary concerns and fears about an aggressive pace of the US rate hikes, traders said.
At the interbank forex market, the rupee opened at 76.60 against the greenback and moved in a range of 76.43 to 76.71 in the day trade. It finally closed at 76.53, registering a rise of just 4 paise over its previous close of 76.57.
On Wednesday, the rupee had settled almost flat at 76.57 against the US dollar.
"Rupee weakened in the first half of the session but rose in the latter half despite broader gains in the dollar. The dollar has been rising on the expectation that the Fed could raise rates at the next week's meeting," said Gaurang Somaiya, Forex & Bullion Analyst, Motilal Oswal Financial Services.
Inflation remains a concern for the central bank and it could continue to hold a hawkish stance.
"Major crosses Euro and Pound continued to remain under pressure against the US dollar. Today's focus will be on the advance GDP number from the US and weaker-than-estimated data could keep gains capped for the dollar," Somaiya said.
On the domestic equity market front, the BSE Sensex ended 776.72 points or 1.23 per cent higher at 57,521.06, while the broader NSE Nifty jumped 206.65 points or 1.21 per cent to 17,245.05.
Brent crude futures, the global oil benchmark, rose 0.23 per cent to USD 105.56 per barrel.
The dollar index, which gauges the greenback's strength against a basket of six currencies, surged 0.44 per cent to 103.41.
Foreign institutional investors were net sellers in the capital market on Wednesday, as they offloaded shares worth Rs 4,064.54 crore, as per stock exchange data.
Gold declines by Rs 442; silver tumbles Rs 950
Gold in the national capital on Thursday fell by Rs 442 to Rs 51,010 per 10 grams in line with decline in international precious metal prices, according to HDFC Securities.
In the previous trade, the precious metal settled at Rs 51,452 per 10 grams.
Silver also declined by Rs 950 to Rs 64,167 per kg from Rs 65,117 per kg in the previous trade.
In the international market, gold was trading lower at USD 1,885 per ounce and silver was flat at USD 23.25 per ounce.
"Gold prices traded weak with spot gold prices at COMEX trading at USD 1,885 per ounce on Thursday. Gold prices fell to a two-month low as the dollar rallied on expectations of aggressive monetary policy tightening by the US Federal Reserve," said Tapan Patel, Senior Analyst (Commodities), HDFC Securities.