The US stocks closed mostly lower yesterday as weak financials and consumer staple shares eclipsed a rally in healthcare and biotechnology sectors. Meanwhile, foreign funds bought shares net Rs 192.68 crore yesterday, as per provisional figures.
Among a host of key decisions yesterday, Sebi relaxed its takeover norms for restructuring listed companies with stressed assets, which is expected to bolster efforts in fight against bad loans.
The gauge had lost 14.04 points in the previous session. On similar lines, the NSE Nifty declined by 26 points, or 0.28 per cent, to 9,627.50.
Banking stocks came under heavy selling pressure after the Punjab government announced farm loan waiver for small and marginal farmers, which is likely to impact the PSU banks.
The 30-share BSE index rose 80.96 points, or 0.25 per cent to 31,392.53. It had gained 255.17 points in the previous session.
The sentiment was also boosted after market regulator Sebi said it plans to relax norms for direct registration of foreign investors and fast-track the listing process as part of efforts to make the Indian stock market more attractive.
Opening strong, the BSE 30-share index hit a high of 31,362.15, before closing at a new record high of 31,311.57, up 255.17 points, or 0.82 per cent, breaking its previous record closing of 31,309.49 on June 5
On Friday, the rupee had closed higher by 10 paise at 64.43 against the US dollar, taking cues from encouraging export numbers for May.
Both the BSE and the NSE recorded their second straight weekly fall by losing 205.66 points, or 0.65 per cent, and 80.20 points, or 0.82 per cent, respectively.
The 30-share BSE index recovered sharply by 107 points, or 0.34 per cent, to 31,182.73, with all sectoral indices led by auto, consumer durables, realty and oil and gas trading in the positive zone.
India’s central bank, which has kept the benchmark repo rate steady at 6.25% in the last four policy reviews awaiting the US Federal Reserve’s decision and the progress of monsoon, may opt to go for a bigger cut in the next policy review
Overseas, Asian shares were trading lower in their morning trade, the NSE 50-share Nifty moved down 0.27 per cent to 9,592.65 at 1146 hours. Gail India fell 1.73 per cent, as also Coal India, TCS, M&M and ONGC.
The 30-share index plunged by 155.91 points, or 0.49 per cent, to 31,106.15.
The market today opened on a positive note, helped by a string of factors like better monsoon forecast and the status quo on policy rates by the RBI yesterday.
RBI Governor Urjit Patel-led MPC for the fourth straight bi-monthly review kept the repo rate unchanged at 6.25 per cent.