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Benchmark indices ended with robust gains on Thursday, supported by firmness in banks and FMCG stocks. The Nifty managed to close above the 17,600 mark while the Sensex ended above 59,000 level for the first time. PSU banks surged while metal and IT stocks corrected.

The rally is supported by various Production-Linked Incentive (PLI) schemes introduced by the government. Aggressive COVID-19 vaccination program in India and persistent foreign capital inflows added to the momentum.

The barometer index, the S&P BSE Sensex, jumped 417.96 points or 0.71% at 59,141.16. The Nifty 50 index advanced 110.05 points or 0.63% to 17,629.50. Both the indices attained record closing high levels.

The Sensex hit an all-time high of 59,204.29 while the Nifty registered a fresh record high of 17,644.60 in late trade today.

Index major Reliance Industries (RIL) rose 2.07% to Rs 2428.10, boosting the main indices.

The broader market lagged the benchmarks. The BSE Mid-Cap index rose 0.48% and the BSE Small-Cap index gained 0.08%.

The market breadth was positive. On the BSE, 1,678 shares rose and 1,591 shares fell. A total of 156 shares were unchanged.

COVID-19 Update:

Total COVID-19 confirmed cases worldwide stood at 22,63,91,916 with 46,59,920 deaths. India reported 3,42,923 active cases of COVID-19 infection and 4,43,928 deaths while 3,25,60,474 patients have been discharged, according to the data from the Ministry of Health and Family Welfare, Government of India.

India's COVID-19 vaccination coverage surpassed the cumulative figure of 76.57 crore as per provisional reports till 7 am today. Consequently, India's recovery rate stands at 97.64%.

Economy:

A two-day meeting of Goods and Services Tax (GST) Council began today in Lucknow. The meeting will be the maiden physical meet of the GST council following the outbreak of the COVID-19 pandemic.

Meanwhile, Finance Ministry has said that Air India received financial bids for its disinvestment process. In a tweet, Secretary, Department of Investment and Public Asset Management Tuhin Kanta Pandey said, financial bids for Air India disinvestment received by Transaction Adviser. He said, the process now moves to concluding stage.

Numbers to Watch:

The yield on 10-year benchmark federal paper rose to 6.168% as compared with 6.163% at close in the previous trading session.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 73.52, compared with its close of 73.50 during the previous trading session.

MCX Gold futures for 5 October 2021 settlement fell 0.77% to Rs 46,535.

The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, rose 0.22% to 92.75.

In the commodities market, Brent crude for November 2021 settlement fell 6 cents at $75.40 a barrel. The contract rose $1.86, or 2.53% to settle at $75.46 a barrel in the previous trading session.

Foreign Markets:

European stocks advanced across the board on Thursday, bucking the trend seen in the U.S. and Asia as global investors kept an eye on economic data and central banks. U.K. Prime Minister Boris Johnson on Wednesday reshuffled his Cabinet, replacing a number of senior ministers and urging his government to tackle economic inequality in the aftermath of the pandemic.

Most Asian markets declined with casino shares in Hong Kong mostly seeing another day of losses. Chinese stocks listed in the U.S. slid the sixth day and U.S. casino firms with exposure to Macau tumbled. Officials have signaled tighter curbs on operators in the gaming hub, again spotlighting Beijing's regulatory curbs.

Japan's exports extended double-digit gains in August, led by strong shipments of chip manufacturing equipment. Exports rose 26.2% in August compared with the same month a year earlier, the Ministry of Finance said on Thursday.

In the US, the S&P 500 and Dow Jones indexes rose on Wednesday on mildly positive factory data and higher oil prices, although concerns over a slowing economic recovery and higher corporate taxes kept sentiment subdued.

Production by US factories, mines and utilities in August surpassed the level seen before the pandemic caused an unprecedented collapse, according to Federal Reserve data released Wednesday. Industrial production increased 0.4% in August, but it could have been 0.3% points higher had it not been for the effects of Hurricane Ida, which caused flooding and destruction in parts of Louisiana and the northeastern United States.

Buzzing Indian Segment:

The Nifty Bank surged 2.22% to 37,668.60. The index hit a record high of 37,720.15 in intraday today.

Punjab National Bank (up 7.61%), IndusInd Bank (up 7.31%), State Bank of India (up 4.77%), IDFC FIRST Bank (up 4.42%), Federal Bank (up 2.81%), RBL Bank (up 2.31%), Bandhan Bank (up 2.18%), Kotak Mahindra Bank (up 1.83%), ICICI Bank (up 1.76%), AU Small Finance Bank (up 1.64%), Axis Bank (up 1.54%) and HDFC Bank (up 0.92%) advanced.

Yes Bank surged 15.96% to Rs 14.75. The counter clocked volumes of 14.33 crore shares on the BSE, compared with an average daily volumes of 3.23 crore in the past two weeks.

Stocks in Spotlight:

ITC surged 6.83% to Rs 230.75, its highest closing level since 9 February 2021. The stock hit the day's high of Rs 233.50 and the day's low of Rs 216.40 in intraday.

Last week, a foreign brokerage maintained a buy call on the ITC stock with the target at Rs 265 per share. The foreign brokerage is of the view that ITC's FMCG business is firmly on the path to a profitable scale-up. It expects the company's FMCG business to deliver a 31% EBITDA CAGR over FY20-24 on the back of industry tailwinds, margin levers and improving asset utilisation.

Vodafone Idea surged 25.98% at Rs 11.25, a day after the government approved several measures to extend a lifeline to the cash-strapped telecom sector.

The Union Cabinet on Wednesday announced nine structural reforms and five procedural reforms for the telecom sector, including a fixed calendar for spectrum auctions with an extended tenure of 30 years for future spectrum allocations, and a mechanism to surrender and share spectrum.

Foreign direct investment (FDI) in the sector has also been allowed up to 100% under the automatic route, from the existing limit of 49%. The cabinet decided to bring know-your-customer (KYC) reforms, allowing an app-based self-KYC and bringing down the e-KYC rate to Re 1.

Further, the cabinet approved a redefinition of the much-litigated concept of adjusted gross revenue (AGR) to exclude non-telecom revenue and a four-year moratorium on players' dues to the government. The cabinet also provided an option to the telecom service providers (TSPs) to pay the interest amount arising due to the moratorium of payment through equity.

Poonawalla Fincorp hit a lower circuit of 5% at Rs 172.15 after the company's managing director Abhay Bhutada and seven others were barred from the securities market by regulator for alleged insider trading.

Sebi said that the eight people involved in the case made wrongful gains worth Rs 13.58 crore during the period under investigation. The funds have now been impounded by the market regulator.

Hindustan Copper dropped 5.98% to Rs 117.05 after the offer for sale (OFS) opened for non-retail investors today, 16 September 2021.

Through the OFS, the Government of India proposes to sell up to 4,83,51,201 equity shares (representing 5% stake), with an option to sell an additional 5% stake or 4,83,51,201 equity shares in case of oversubscription.

The floor price for the OFS is Rs 116 per equity share, at a 6.83% discount to Hindustan Copper's closing price of Rs 124.50 recorded on the BSE on Wednesday, 15 September 2021.

As on 15:30 IST, the OFS received subscription for 6,14,66,049 shares. It was subscribed 141.25% on the base non-retail offer size of 4,35,16,080 shares and 70.62% on the total non-retail offer size (base size + green shoe) of 8,70,32,160 shares.