MARKETS RECORD BIGGEST ONE DAY GAIN IN 2 MONTHS

MUMBAI: Domestic stocks closed over 1% higher on Thursday, their biggest single-day gain in nearly two months, supported by a global rally in equities.

The BSE Sensex rose 638.70 points, or 1.22%, to 52,837.21, while the Nifty gained 1.23% to close at 15,824.05.

Shares in other Asia-pacific markets were mostly higher as well, with Hong Kong’s Hang Seng index rising 1.83% and South Korea’s Kospi 1.07%.

According to Milind Muchhala, executive director at global investment bank Julius Baer, global market cues and a decent start to the earnings season cheered investors.

“Markets are clearly rewarding stocks or sectors where the earnings momentum is strong or where growth visibility remains good. Moreover, with the flurry of initial public offers, which are seeing a healthy response from investors, the related sectors are seeing interest due to benchmark valuations. However, it becomes critical to keep an eye on valuations, as some of the stocks have seen a very sharp re-rating. Key monitorables in the near term are the gross margin pressure due to high input costs/commodity prices and recovery in retail demand,” he said. The India Volatility, or the so-called fear gauge, fell 10%, indicating that investors do not expect any further corrections.

Foreign investors worried about a third Covid wave have been net sellers of Indian shares worth $1.18 billion in July so far, after pumping in $2.25 billion in the previous two months.