Sensex, Nifty record gains for second straight session led by HDFC Bank, PowerGrid

Markets at close: Indian benchmarks ended Thursday on a positive note after a less hawkish US Federal Reserve downplayed an rate hike, along with a drop in global oil prices which helped cool domestic inflation fears.

The blue-chip BSE Sensex ended 128.33 points, or 0.17 per cent, higher at 74,611.11, while the broader NSE Nifty 50 gained 43.35 points, or 0.19 per cent, to close at 22,648.20.

“Nifty Spot tested 22,710, however, witnessed a sell-off for the second time. All double expiry days are starting to prove to be days where the upmove is not settling. For the next week,  the broader range shall be 22500 to 23200, traders should look for a break below 22,500 only to be cautious,” said Rahul Ghose Founder & CEO, Hedged.in.

The US central bank, as widely expected by the markets, kept interest rates unchanged on Wednesday and indicated hopes of avoiding rate hikes in the near term. Fed Chair Jerome Powell's remark that "a rate increase is unlikely" was perceived as dovish by the market, according to VK Vijayakumar, chief investment strategist at Geojit Financial Services.

Market sentiments were further bolstered by gains in the Nifty energy index, which surged 1.1 per cent on the back of a drop in global oil prices. This decline came amid rising hopes of a ceasefire agreement in the Middle East. Notably, Bharat Petroleum, Hindustan Petroleum, and Indian Oil Corp gained between 3.9 per cent and 7.7 per cent.

The fall in oil prices to a seven-week low also had a positive impact on inflation expectations in India, benefiting paint makers like Asian Paints and Grasim Industries, which saw gains of 3.5 per cent and 1.1 per cent, respectively.

Auto stocks also experienced a rise of 1.1 per cent, supported by higher April sales, while metal stocks added 1.13 per cent on the back of a weakening dollar, making metals cheaper for holders of other currencies.

However, gains on the Nifty were capped by a decline in high-weightage bank stocks, which dropped 0.3 per cent. This decline was led by private lender Kotak Mahindra Bank, which lost 3 per cent following the resignation of its joint managing director after just two months in the role.

(With Reuters inputs.)