Sensex jumps 819 points, auto and IT stocks outshine

Mumbai, Aug 9 (IANS) Indian equity indices closed in the green on Friday following positive sentiment in the markets.

At closing, Sensex closed 819 points or 1.04 per cent higher at 79,705 and Nifty closed 250 points or 1.04 per cent higher at 24,367.

On the Bombay Stock Exchange (BSE), 2,345 shares closed in the green, 1,562 shares in the red, and 99 shares with no change.

The reason for the rise in the market is being attributed to the greater-than-expected decline in the number of jobless claims in the US.

Buying was also seen in the smallcap and midcap. The Nifty midcap 100 index rose 493 points or 0.87 per cent to 57,174 and the Nifty smallcap 100 index rose 102 points or 0.56 per cent to 18,410.

Domestic market indices showed resilience when the global market fluctuated.

The robust results reported by companies and improving future guidance supported the domestic market. All the indices closed in green. Auto, IT, PSU bank, Fin services, pharma, realty, media and energy indices were the biggest gainers.

Market experts said: "Positive US jobless claims data eased the fears of recession and provided a favourable broader market reaction. The IT index outperformed in expectation of improved spending."

"Though the sentiment is gaining traction, a lack of fresh triggers and subdued earnings will be a deterrent for higher valuation. To safeguard the sentiment, investors are advised to shift their focus from growth stocks to value stocks. Overall, the day's trading reflected cautious optimism, with investors closely monitoring upcoming corporate earnings and global economic indicators," they added.

In the morning, the markets opened with gains, At 9.33 a.m., Sensex was up 867 points or 1.07 per cent at 79,730 and Nifty was at 24,374, up 257 points or 1.07 per cent.