Market up 414 pts on rate cut hopes, better monsoon

Reports that Greece has given its creditors new proposals on a bailout boosted market sentiment.

By: ENS Economic Bureau | Mumbai | Published: June 23, 2015 2:28 am
indian economy, global economy, inflation, current account deficit, international economy, india gdp, gdp india, economic growth, india economic growth, indian express column, ie column, Arvind Virmani column With this gain, the Sensex has gained 1,359.23 points, its longest winning run since February, in the last seven sessions.

Extending its gaining streak for the seventh consecutive session, the Sensex jumped by 414 points as investors celebrated the good progress in monsoon and the possibility of a rate cut by the Reserve Bank of India (RBI). Strong global cues following reports that Greece has given its creditors new proposals on a bailout fuelling hopes of averting a default and possible exit from the euro zone, boosted the sentiment across the region, including India.

With this gain, the Sensex has gained 1,359.23 points, its longest winning run since February, in the last seven sessions.

The 30-share BSE index resumed higher and remained in the positive terrain throughout the day. It hit an intra-day high of 27,782.31 before ending at 27,730.21, a steep rise of 414.04 points or 1.52 per cent — its biggest single day gain since May 8 when it surged by 506.28.

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The broader 50-issue NSE Nifty reclaimed 8,300-mark to hit a intra-day peak at 8,369.45 and settled at 8,353.10, showing a significant rise of 128.15 points or 1.56 per cent.

Top gainers in the Sensex included Axis Bank, which surged 3.62 per cent and ICICI Bank zoomed 3.46 per cent. Value buying by medium-to-long-term investors at lower levels also contributed its bit.

Vinod Nair, head-fundamental research, Geojit BNP Paribas Financial Services, said, “Earlier the RBI had highlighted the risks from below normal monsoon, food inflation, increase in crude prices and external environment. This warning, after the last month’s cut of 25 bps, had washed away the likelihood for another cut. But it’s a surprise that in a short time, we have now seen better than expected development with regards to monsoon, good number for May consumer inflation number, increase in MSP and relief to global risk, which can lead to a cut.”

Meanwhile, the rupee closed at 63.52, up 0.07 per cent from its previous close of 63.56. It had opened at 63.49 and rose to as much as 63.46, a level last witnessed on May 15, 2015.

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