Resuming their northward journey, boisterous benchmarks showcased an enthusiastic performance on Thursday, by rallying a percentage point. Though, domestic bourses made a choppy start and the indices even went on to test psychologically important  24,700 (Sensex) and 7,350 (Nifty) levels, but the key gauges got solid support around those intraday low levels as they convalesced from thereon as investors continued hunt for fundamentally strong stocks. Frontline indices not only ended near their intraday high levels but also recorded their all time closing high, settling comfortably above their crucial 7,450(Nifty) and 25,000 (Sensex) bastions as investors took to hefty across the board buying.

Sentiments got bolstered after the India Meteorological Department (IMD) has forecasted that conditions are favourable for the onset of the southwest monsoon over Kerala and its further advance into some more parts of south Arabian Sea, remaining parts of Maldives-Comorin area, some parts of Tamil Nadu and the Bay of Bengal during the next 48 hours. Meanwhile, Prime Minister, Narendra Modi met the Secretaries of all government departments to outline his agenda of governance and in a positive step he said that the Government’s priority is to revamp the economy and asked the officials to prepare presentations on the contributions their Ministries can make to the revival. In a separate development, industry body Confederation of Indian Industry (CII) has called for a comprehensive review of the new Companies Act 2013 and the rules issued there under.

On the global front, European markets were trading slightly in the red in early deals with investors awaiting the European Central Bank’s policy announcement. The central bank is widely expected to cut all its main interest rates at Thursday’s meeting, including pushing its deposit rate into negative territory for the first time. However, most of the Asian counters ended in the green terrain with Shanghai Composite gaining the most. Moreover, Japanese stocks ended at near three-month highs on Thursday because of a weaker yen,

Back home, there was broad based buying witnessed in the markets and apart from the blue chips, the broader markets too participated strongly in the rally. The markets sentiment was also boosted by data showing that foreign funds remained net buyers of Indian stocks on June 4, 2014. Foreign institutional investors (FIIs) bought shares worth a net Rs 192.56 crore on Wednesday, as per provisional data from the stock exchanges.

Meanwhile, cement stocks viz, Andhra Cement, India Cements, Heidelberg Cements and Dalmia Bharat remained on buyers’ radar on price hikes ranging from 3-30 percent across most regions. Additionally, shares in fertilizer companies, Chambal Fertilisers and Chemicals and National Fertilizers were surging on hopes that new government will soon clear its 2013/14 outstanding subsidy payments for the sector. On the flip side, Sugar stocks, which were up on hopes that the Modi-led government would help revive the industry by encouraging ethanol blending in petrol and also hike import duty on the commodity to support local prices, were down on profit-booking.

The NSE’s 50-share broadly followed index Nifty rose by over seventy points and ended comfortably above the psychological 7,450 support level, while Bombay Stock Exchange’s Sensitive Index — Sensex surged by over two hundred and ten points to finish above the psychological 25,000 mark. Broader markets too were trading with traction throughout the trade and ended the session with a gain of over a percentage point. The market breadth remained in favor of advances, as there were 2,153 shares on the gaining side against 869 shares on the losing side while 105 shares remain unchanged.

Finally, the BSE Sensex soared by 213.68 points or 0.86%, to 25019.51, while the CNX Nifty surged by 71.85 points or 0.97%, to 7,474.10.

The BSE Sensex touched a high and a low of 25044.06 and 24644.88, respectively. The BSE Mid cap index was up by 1.01%, while the Small cap index rose by 1.42%.

The top gainers on the Sensex were SSLT up by 6.50%, Hindalco Inds up by 5.54%, Hindustan Unilever up by 4.27%, Tata Power up by 3.64% and Tata Steel up by 3.45%. While Mahindra & Mahindra down by 1.46%, HDFC Bank down by 1.43%, Cipla down by 0.87%, Dr Reddys Lab down by 0.74% and ICICI Bank down by 0.56% were the top losers in the index.

On the BSE Sectoral front, Metal up by 3.33%, Power up by 1.96%, Oil & Gas up by 1.96%, PSU up by 1.55% and FMCG up by 1.49% were the top gainers, while Bankex down by 0.39% was the only loser in the space.

Meanwhile, with an intent of giving bureaucracy a greater role in decision-making, Prime Minister Narendra Modi in three hour long meeting with secretaries of all the government departments collectively, asked them to directly get in touch with him to resolve policy issues and expedite decision-making.

Just to ensure that implementation of decisions and programmes were not stuck in red-tape, PM asked secretaries to call him or e-mail him directly for suggestions or intervention required in resolving issues or expediting decisions making process.

In all, 77 top bureaucrats, including finance secretary Arvind Mayaram, home secretary Anil Goswami, defence secretary Radha Krishna Mathur and foreign secretary Sujatha Singh, were called for the meeting and for the meeting sixteen groups were formed by clubbing related ministries.

While, all finance ministry departments were grouped together, secretaries of energy-related departments, power, coal, oil, mines and atomic energy, were clubbed. Additionally, Agriculture and related departments were put together, with the infrastructure group comprising of railways, telecom, roads, civil aviation, shipping and posts.

Further, notes of finance ministry officials for the meeting with the prime minister included inflation, fiscal consolidation, controlling the current account deficit, clarity on tax administration and disinvestments in non-core sectors like steel and cement.

The CNX Nifty touched a high and low of 7,484.70 and 7,360.50 respectively.

The top gainers of the Nifty were BPCL up by 7.17%, SSLT up by 6.65%, Hindalco Industries up by 6.10%, Hindustan Unilever up by 5.21% and Cairn India up by 4.74%. On the other hand, Mahindra & Mahindra down by 1.42%, HDFC Bank down by 1.22%, IndusInd Bank down by 1.05%, Cipla down by 0.92% and Bank of Baroda down by 0.86% were the top losers.

Most of the European markets were trading in red, Germany’s DAX was down by 0.07% and United Kingdom’s FTSE 100 was down by 0.25%, while France’s CAC 40 was up by 0.08%.

The Asian markets concluded Thursday’s trade mostly in green, with investors keeping an eye on European Central Bank policy decision.

Asian Indices Last Trade Change in Points Change in %
Shanghai Composite 2040.88 16.04 0.79
Hang Seng 23109.66 -42.05 -0.18
Jakarta Composite 4935.56 3.00 0.06
KLSE Composite 1869.00 3.80 0.20
Nikkei 225 15079.37 11.41 0.08
Straits Times  3279.64 -0.53 -0.02
KOSPI Composite 1995.48 -13.08 -0.65
Taiwan Weighted 9140.72 20.76 0.23