Though gains were capped as sell-off resumed in financial stocks in the second half of the session, the equity market ended in the positive zone on Thursday.
The S&P BSE Sensex ended at 30,933, up 114 points or 0.37 percent while the 50-share index Nifty of NSE held on to the crucial 9,100 level to end at 9,106.25 up 40 points or 0.44 percent.
However, the S&P BSE Midcap index gained 0.76 percent and the S&P SmallCap added 0.72 percent.
The FMCG category leader ITC in the country has a market share of 77 percent in cigarettes and has rallied over 7 percent to Rs.188.90 on the BSE and emerged as the biggest gainer on Sensex.
It is expected to ease the shortage of cigarettes in the market, as ITC has resumed its cigarette production and distribution. The company has decided to focus solely on the manufacturing of essential items like food, personal hygiene, and, sanitation products while it stopped rolling out cigarettes, which is a part of its non-essential portfolio. ITC is having its manufacturing plants across Bangalore, Kolkata, Munger, Saharanurand, Ranjangaon.
On Wednesday after the government announced that domestic airline operations would resume on May 25, more than two months after all flights were halted, the major shares of InterGlobe Aviation and Spicejet rallied up to 10 percent on Thursday morning.
The country’s largest passenger airline InterGlobe Aviation, which operates under the IndiGo brand has rallied 10 percent to Rs 1,002 in the opening deals.
It is believed by the Credit rating agency that the passenger traffic will decline by 30 percent during the current financial year 2020-21 as there will be certain inhibitions of traveling besides restrictions of the capacity that can be used on flights.
On Thursday after the two-wheeler manufacturer March quarter results came in better than expected, shares of Bajaj Auto have rallied as much as 6.4 percent to Rs2,722.80 on the BSE.
While looking globally, on concerns about the long-term impact of the new coronavirus and simmering US-China tensions, equity markets slipped on Thursday, though these worries couldn’t stop oil prices from matching to a 2-1/2 month high.
In Asia, China stocks ended lower, and, in commodities, oil prices rose to their highest since March.