Dalal Street Corner: Bulls take control of D-street as benchmarks extend gains for 2nd day; What should investors do on Friday?

Bulls took control of Dalal Street on Thursday as auto and banking stocks helped the market close higher for the second day on Thursday. Benchmark indices Nifty50 and the Sensex gained nearly 1.5% higher amid support from IT and bluechip stocks.  

The 12-share crucial Nifty Bank too surged by more than 500 points to close above 36,800.  

In the broader market, Nifty midcap and small cap rose by 1.07% and 1.54% respectively even as geopolitical tensions and inflation fears loom large.  

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Among sectors, Nifty auto led the recovery as it rose more than 2%, while IT gained nearly 1.5% after coming under immense pressure in the past couple of weeks. Banking and financial stocks were other noticeable contributors as all sectoral indices closed in the red.  

"Resurgence of investor interest in IT and Banking space along with support from heavyweights and global peers helped in strengthening the market," said Vinod Nair, Head of Research at Geojit Financial Services, 

However geopolitical worries, inflation fears and likely hike in fed rates is pressurising the foreign investors to continue their selling spree, he said. "Increasing oil prices on concerns over potential EU ban on Russian imports will be a short-term headwind resulting in volatility in the market," Nair added.  

Bulls came back strongly today after a pretty long wait helped by the Energy sector which is seeing robustness in gross refining margins, said S Ranganathan, Head of Research at LKP securities. 

"Almost all sectoral indices led by Automobiles traded in the Green with the volatility index cooling off. Accumulation seen in some of the big boys which led the fall during the last one week helped the Bulls get back strongly today," said Ranganathan.  

Ajit Mishra, VP-Research, Religare Broking Ltd, said firm global cues triggered a strong start for the Indian market which further strengthened as the day progressed.

"Global markets are witnessing a rebound amid mixed cues and we’re seeing the rub-off on Indian markets as well. Indications are in the favour of further rebound in the index. However participation of the banking pack would be critical for any sustained move. Meanwhile, the focus should be on sectors like energy, auto, pharma and banking for long trades," said the Religare Broking expert.