Pullback rally on Apr F&O expiry day

Mumbai: Benchmark stock indices Sensex and Nifty rebounded by over one per cent on Thursday, propelled by buying in index majors Reliance Industries, HUL and Infosys along with an overall positive trend in global markets.

The 30-share BSE benchmark jumped 701.67 points or 1.23 per cent to end at 57,521.06. During the day, it zoomed 971.46 points or 1.70 per cent to 57,790.85 amid the expiry of the derivatives contracts. The NSE Nifty rallied 206.65 points or 1.21 per cent to 17,245.05 as 45 of its stocks ended in green.

"Markets rebounded sharply and ended the monthly derivatives expiry session with decent gains. In continuation to the prevailing trend, upbeat global cues triggered a firm start which further strengthened with healthy buying in select index majors from FMCG, energy, banking and IT space," said Ajit Mishra, V-P (research), Religare Broking Ltd.

"A smart pullback rally on the last day of April F&O expiry series helped the markets rebound amidst wild intra-day gyrations during the week," said Shrikant Chouhan, head (equity research-retail), Kotak Securities Ltd.

"Investors preference is shifting to safe-haven assets due to volatile equity market and global uncertainties indicated by rising US Dollar index. FPIs are in a selling mode while domestic investors are positive and will focus on defensives like consumption and domestic growth sectors like infra & capital goods.

Volatility is expected to continue in the short-term due to weakening global trade and we suggest investors to have rationale expectations focusing on domestic growth sectors like CAPEX, banking and defensives," said Vinod Nair, head (research) at Geojit Financial Services. Among Sensex scrips, Hindustan Unilever spurted the most by 4.55 per cent after the company posted better-than-expected financial results for the fourth quarter of FY22.

HUL posted an 11 per cent growth in domestic business on a flat volume growth due to a high base effect. Reliance Industries rose by 1.49 per cent after a tripartite partnership of investment venture Bodhi Tree Systems, Viacom18 and Reliance Projects & Property Management Services Ltd was announced on Wednesday.