Sensex reclaims 32K, Nifty closes at 9,490 as banking stocks extend gains

Sensex and Nifty extended gains for the second consecutive session tracking positive global cues.

Domestic indices ended the monthly derivatives expiry of May on a positive note on Thursday on back of heavy buying in auto, banking and financial stocks.

While Sensex ended 595 points higher at 32,200, Nifty ended the day trade 175 points higher at 9,490. On Wednesday, Sensex closed 995 points higher at 31,605 and Nifty gained 285 points to 9,314.

Among sectors, barring PSU Banks, all the other sectoral indices witnessed healthy buying interest with capital goods, metals, auto and banks closing over 2%.

Overseas, markets rose on hopes of economic recovery as countries eased lockdown restrictions. Asian stocks extended gains tracking US markets that closed higher, driven by rising optimism around the re-opening of the world economy.

On Wall Street, sentiments were also boosted by "return to work" cash bonuses announced recently. However, tensions between the US and China and weakness in dollar kept gains in check. US President Trump has said he'd announce a response to China's policies towards Hong Kong later this week.

European markets also opened higher on Thursday, led by Germany, France and UK as investors digested the European Commission's plan for a 750 billion Euro recovery fund.

Expressing views over today's bullish trend, Vinod Nair, Head of Research at Geojit Financial Services said," A huge EU stimulus plan provided a boost to European shares while Asian shares were affected by the US-China diplomatic issues. Indian markets are banking on continued resumption of economic activities, inspite of still high number of new infections. Further, stimulus measures are also expected to boost demand in the economy and help the most impacted sectors to recover. Market is rising on the back of expectations while there has been little change in ground realities."

Meanwhile, companies set to announce their earnings are Ceat, Agro Tech Foods, Daawat, Lupin, Muthoot Finance, TVS Motors, Wendt among others.

As per technical indicators, Nifty turned from mix to bullish and the index lead towards 9,500 by closing bell. While 9,500 and 9,600 levels will be the future resistance, the index will find supports around 9,000 mark and then at 8,800 level, in case of any decline.

Ajit Mishra, VP - Research, Religare Broking," Nifty has managed to surpass its immediate and crucial hurdle at 9450. It may be heading toward 9650-9750 levels. We feel banking and financials will continue to play a critical role. Amid all, market participants are likely to keep a watch on GDP data scheduled tomorrow i.e. May 29 while on the global front any news on US-China tussle will be on investors' radar. Further, the on-going earning season would keep stock-specific volatility high."

On the currency front, the rupee ended on a weaker note at 75.75 per dollar as compared to the last closing of 75.72 per dollar.

Share Market Update: Sensex ends 595 points higher, Nifty at 9,490; Eicher Motors, Hero MotoCorp top performers

Why Axis Bank share price has gained 21% in three days

What's behind the rally in Dabur India share despite 24% fall in Q4 net profit

US stock futures, Asian shares gain on hopes of world economic recovery

Stocks in news: Ujjivan Financial, United Spirits, Wendt, Ceat, Federal Bank, Lupin, TVS Motor and more