JOIN USKey benchmark indices on Thursday surged as the battered domestic currency rupee recovered against the dollar after the latest data showed that India's current account deficit (CAD) narrowed in the January-March quarter, easing some concerns over the funding of the deficit.
So much so, markets nearly ended 2 per cent higher on Thursday after CAD moderated sharply to 3.6 per cent of GDP in Q4 of March 2013 from a historically high level of 6.7 per cent of GDP in Q3 December 2012.
Investor sentiment in D-Street also revved up after rupee gained from a record low hit in the previous session. The rupee was up at 60.21 to the dollar, recovering from a record low of 60.76 hit on Wednesday.
The market breadth, indicating the overall health of the market, was positive. The market was volatile too as traders rolled over positions in the futures & options (F&O) segment from the near month June 2013 series (which expired on Thursday) to July 2013 series. In the day's trade, Reliance Industries (RIL), ONGC and Oil India edged higher on reports that a meeting of Cabinet Committee on Economic Affairs (CCEA) will be held on June 27, 2013 to consider a proposal for a steep hike in natural gas prices. IT and pharma stocks gained on a recent steep slide in rupee against the dollar. Index heavyweight and cigarette major ITC slipped in volatile trade. NTPC reversed initial gains in volatile trade.
Commenting on the market, Kotak Securities' Deputy Vice-President Sahaj Agarwal said, "Rollover to the July series remains on the weak side. Short aggression is not being carried forward to the July series indicating possibility of a bounce back.... We expect the index to find support at 5,550-levels and bounce back to 5,750-5,800 in the near term."
The popular Sensex at BSE jumped 323.83 points or 1.75 per cent to settle at 18,875.95, its highest closing level since June 19, 2013. The index jumped 373.63 points at the day's high in late trade and rose 136.16 points at the day's low in early afternoon trade.
The 50-unit CNX Nifty at NSE advanced 93.65 points or 1.68 per cent to settle at 5,682.35, its highest closing level from June 19, 2013. The index hit a high of 5,699.35 and a low of 5,630.95 in intraday trade.