Sensex, Nifty Extend Gains To Second Straight Session

Domestic stock markets shrugged off early weakness to close higher on Thursday, extending their gains to a second straight session. The Sensex added 142.09 points to end at 35,898.35 while the Nifty settled at 10,789.85, up 54.40 points - or 0.51 per cent - from the previous close. Advances across all sectors barring information technology led by financial, energy and metal stocks pushed the markets higher. Thirty six stocks on the 50-scrip index finished the session higher. Top gainers were Indiabulls Housing Finance, Bajaj Finserv, Tata Motors, Dr Reddy's Laboratories and Vedanta, ending with gains of between 2.59 per cent and 6.32 per cent. 

State-run banking stocks spiked, a day after the government said it would inject Rs. 48,239 crore into 12 such lenders as part of its recapitalisation programme. The Nifty PSU Bank - comprising public sector banking stocks - finished 0.50 per cent higher for the day, after rising 1.66 per cent in intraday trade. 

Indian Overseas Bank, United Bank of India, UCO Bank, Central Bank Of India and Andhra Bank finished between 6.25 per cent and 8.12 per cent higher. 

Piramal Enterprises closed 2.11 per cent higher, after the company said the Supreme Court had ruled in favour of its drug Saridon, exempting its formulation from the list of banned fixed dose combinations. In September last year, Piramal Enterprises had been awarded a stay order from the Supreme Court on the ban, which allowed it to continue manufacturing, distribution and sale of Saridon, the company said in a regulatory filing.

Meanwhile, strong fund inflows from institutional investors supported the markets, according to analysts. 

Foreign inflows supported the upmove in the domestic markets. On Wednesday, foreign portfolio investors (FPIs) net purchased Rs. 713.47 crore of equities while domestic institutional investors were net buyers to the tune of Rs.113.27 crore, provisional data from the NSE showed.