INDICES OFF DAY`S HIGH; PSU BANK SHARES ADVANCE

The benchmark indices came off the day`s high in mid-morning trade. The Nifty traded above the 22,850 level. PSU bank shares witnessed buying demand for the second consecutive trading session. Trading could be a volatile due to the expiry of weekly index options on the NSE.

At 11:30 IST, the barometer index, the S&P BSE Sensex jumped 806.33 points or 1.11% to 75,205.57. The Nifty 50 index jumped 251.70 points or 1.11% to 22,872.05.

The broader market outperformed the headline indices. The S&P BSE Mid-Cap index jumped 2.86% and the S&P BSE Small-Cap index rallied 3.32%.

The market breadth was strong. On the BSE, 2,982 shares rose and 682 shares fell. A total of 137 shares were unchanged.

The NSE`s India VIX, a gauge of the market`s expectation of volatility over the near term, dropped 8.45% to 17.29.

The BJP-led National Democratic Alliance (NDA) will establish the new government on Saturday, when Narendra Modi will be inaugurated as Prime Minister for a historic third consecutive term. The BJP has obtained written support from the leaders of the Telugu Desam Party (TDP) and Janata Dal (United) (JD-U).

Buzzing Index:

The Nifty PSU Bank index jumped 4.52% to 7,305.75. The index surged 7.52% in two trading session.

Central Bank of India (up 6.96%), Union Bank of India (up 6.17%), Indian Overseas Bank (up 5.54%), Indian Bank (up 5.27%), Bank of Maharashtra (up 5.26%), Punjab & Sind Bank (up 5.26%), Bank of Baroda (up 5%), UCO Bank (up 4.96%), State Bank of India (up 4.78%) and Bank of India (up 4.28%) advanced.

Stocks in Spotlight :

Century Textiles & Industries soared 13.59% after the company�s wholly owned subsidiary, Birla Estates has entered into a joint venture (JV) with Barmalt India for a luxury residential group housing development in Gurugram, Delhi.

Aurionpro Solutions advanced 3.85% after the company said that its subsidiary Integro Technologies has entered into a partnership agreement with Yoma Bank in Myanmar for revolutionizing their SME lending operations.

Global Markets:

Most Asian stocks advanced on Thursday, buoyed by growing optimism for lower interest rates globally. The positive sentiment mirrored record highs on Wall Street`s S&P 500 and NASDAQ, fueled in part by weak US labor data. This data rekindled expectations of a Federal Reserve rate cut by September.

The US Labor Department said job openings fell to 8.059 million in April, the lowest since 2021, from a downwardly revised 8.355 million in March.

Further fueling the rally were Wednesday`s interest rate reduction by the Bank of Canada and anticipation of a similar move by the European Central Bank later that day. This confluence of events fueled hopes for a global decrease in borrowing costs.

Chip-related stocks climbed after market leader NVIDIA surged to a $3 trillion valuation on Wednesday, riding the wave of artificial intelligence (AI) enthusiasm. Positive comments from ASML Holding NV, the world`s top manufacturer of semiconductor equipment, further bolstered investor confidence in the chipmaking sector. The market anticipates that rising AI demand will translate into a global surge for semiconductors.

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