F&O expiry: Sensex soars 1,041 pts, Nifty tops 16,900; Bajaj twins leap 10%

CLOSING BELL

Stock market highlight: Equity markets surged on the monthly F&O expiry day as the US Federal Reserve suggested a slowdown in the rate hike cycle, after one more "unusually high rate hike". Besides, the US Fed's confidence about a strong labor market, and dismissal of recession lent muscle to the bulls.

The benchmark S&P BSE Sensex zoomed 1,098 points in the intra-day trade, before settling 1,041 points, or 1.87 per cent, higher at 56,858. The NSE Nifty50, on the other hand, reclaimed the 16,900-mark to end at 16,930, up 288 points or 1.73 per cent. 

"The market is responding to the possibility of a soft landing for the US and the global economy. In India, relentless FII selling had emboldened the bears to go short. The market surge that we are witnessing now is partly short covering and partly investment buying in segments that are doing well," said Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

Bajaj Finance leaped 10.4 per cent on the bourses today after the consumer financier posted better-than-expected June quarter results. It's sister firm Bajaj Finserv, too, jumped 10.2 per cent as its board approved 1:1 bonus issue and 1:5 stock split. READ MORE

Tata Steel, Kotak Bank, IndusInd Bank, Nestle, Infosys, Asian Paints, and Tech M were the other outperformers, up between 3 per cent and 4.6 per cent.

On the downside, Bharti Airtel, Ultratech Cement, Dr Reddy's Labs, Sun Pharma, and ITC were the only laggards, down up to 1.13 per cent.

In the broader markets, the Nifty MidCap and SmallCap indices added 0.8 per cent each. Sectorally, all the indices settled in the positive zone, led by The Nifty IT index (up 3 per cent), and the Nifty Financial Services index (2.5 per cent). The Nifty Healthcare index logged the most tepid gains, up 0.3 per cent.

Where are Bajaj Twins headed?

Both, Bajaj Finance and Bajaj Finserv, may enter a long-term bull run if the current levels are held decisively for few more sessions READ MORE

FII coming back?

he worst phase may be getting over soon for foreign flows into domestic equities, said analysts, who expect the foreign investors to return soon to emerging markets, including India, as the global central banks, especially the US Federal Reserve (US Fed), become less aggressive in hiking rates to tame inflation. READ MORE