Sensex rises for 2nd session, settles 692 points higher, Nifty tops 22,800

Modi's National Democratic Alliance (NDA) on Wednesday formally named him as the leader of a new , a day after it regained power with a surprisingly slim majority.

, , , , and were the top Sensex gainers, rising 3-4%. NTPC, L&T, , and also closed in the green, while HUL, Asian Paints, M&M, and Nestle India settled in the red.

On the sectoral front, surged 4.7% led by Brigade Enterprises, Prestige Estates Projects, and Sobha. Nifty Media, IT, PSU Bank, and OIL & Gas also closed 2-3% higher. Domestically focussed small and midcaps added 3.3% and 2.2%, respectively.

Among individual stocks, BHEL closed 9% higher after receiving thermal power project orders, including one from Adani Power.

Expert Take

"The benchmark indices maintained their positive momentum, as the new coalition is about to swear in, which is predicted to be a stable government. However, anxiety persists over the new cabinet being put in place and policy measures expected to be announced in the coming Budget. Meanwhile, the market is awaiting fresh signals from the RBI's comments on liquidity," said Vinod Nair, Head of Research, Geojit Financial Services.

Rupak De, Senior Technical Analyst at LKP Securities, said, "The Nifty continued to rise after a bullish Harami Pattern formation on Wednesday on the daily timeframe. However, during the day, the index remained range-bound, oscillating between 22,650 and 22,900. The India VIX has slipped sharply below 17 in the last two days, signalling low volatility. In the near term, the index might continue remaining within the bands of 22,600-23,000."

Global Markets

World stocks were on the brink of an all-time high and the euro rose on Thursday ahead of what was widely expected to be the European Central Bank's first interest rate cut in nearly five years. The pan-European STOXX 600 up 0.3% in early deals.

MSCI's broadest index of Asia-Pacific shares outside Japan rose 1.28%. The index was on course for a 2.8% gain in the week and was set to snap its two-week losing streak.

Crude Oil

Oil prices were stable on Thursday, as support from growing expectations of an interest rate cut from the US Federal Reserve in September offset higher US inventories and OPEC+ plans to gradually increase supply.

Brent crude futures were up 25 cents or 0.3% at $78.66 a barrel. U.S. West Texas Intermediate crude futures were up 31 cents or 0.4% at $74.38.

Rupee Ends Lower

The Indian rupee ended weaker on Thursday, pressured by dollar demand from local importers and foreign banks even as most of its Asian peers gained.

The rupee closed at 83.4725 against the US dollar, lower by 0.1% compared to its close of 83.37 in the previous session.

(With inputs from agencies)