Rising for the second day,BSE Sensex today gained over 206 points to close at nearly one-week high on sustained value buying in refinery,banking and auto stocks after the Indian rupee appreciated after six days of losses.
Major shares that gained on Sensex in today’s trade were Bharat Heavy Electricals Ltd (BHEL),Tata Motors,HDFC Bank,ICICI Bank,State Bank of India (SBI),HDFC Ltd,Coal India,Jindal Steel,Tata Steel,Sterlite Industries,Maruti Suzuki India,Mahindra & Mahindra Ltd and Sun Pharmaceuticals Industries.
The 30-share S&P BSE benchmark index Sensex,which had surged 408 points in the previous session,rose further by 206.50 points,or 1.13 per cent to end at 18,519.44 — the highest closing since August 16 (18,598.18).
Brokers said the stock market sentiment improved as the battered rupee rebounded from all-time low levels of 65.56 to 64.12 per dollar after the government and RBI’s assurances.
The broad-based NSE Nifty rose by 63.30 points,or 1.17 per cent to 5,471.75. Also,SX40 index,the flagship index of MCX-SX,closed up at 10,960.73,higher by 142.85 points or 1.32 per cent.
In the Sensex pack,Reliance Industries surged 1.64 per cent to Rs 819.05 after the company and its partner BP plc announced a new gas condensate discovery off the east coast in the Cauvery basin.
Private lenders like HDFC Bank and ICICI Bank saw heavy buying as investors judged recent losses as excessive.
Led by over 8 per cent surge in BHEL,the capital goods sector index gained the most rising 2.04 per cent to 7,235.68.
It was followed by banking index by 1.91 per cent to 10,791.32. Oil and Gas sector index rose by 1.59 per cent to 8,191.04 and the auto index by 1.51 per cent to 10,248.18.
Indian shares gain for a second day as rupee recovers; FII flows watched
(Reuters) BSE Sensex rose more than 1 percent on Friday to mark their second consecutive day of gains,with beaten down bank shares such as ICICI Bank gaining on value buying,as Indian rupee recovered after six straight days of losses.
The rupee,the strength of which is crucial for a potential rollback of the RBI’s liquidity tightening measures,recovered from a record low hit on Thursday after finance minister said the currency was “undervalued”.
The gains also tracked the easing of an emerging markets rout,while global shares headed for a second day of gains as data suggesting the global economy is improving took the edge off concerns about the impact of a cut in U.S. monetary stimulus.
However,traders remained wary about foreign flows after overseas investors sold a net $701.4 million worth of shares in the five sessions through Thursday,ahead of June quarter GDP data and the expiry of August derivatives contracts next week.
“The market recovered on good volumes as the rupee started rising after the finance Minister’s comments,but the market can give deceptive moves ahead of derivatives expiry,hence cautious approach required,” said Kishor P. Ostwal,chairman and managing director of CNI Research Ltd.
The benchmark BSE index rose 1.13 percent,or 206.50 points,to end at 18,519.44. The index fell 0.42 percent for the week,marking its fifth consecutive weekly fall.
The broader NSE Nifty rose 1.17 percent,or 63.30 points,to end at 5,471.75,but was 0.65 percent lower for the week.
Beaten down banking stocks surged on value buying and hopes of more measures by the government to support the economy,dealers said.
NSE bank index gained 2.17 percent led by ICICI Bank Ltd,which rose 2.6 percent,while HDFC Bank Ltd ended 3.2 percent higher.
Reliance Industries Ltd gained 1.7 percent after it and British oil company BP Plc announced a new gas condensate discovery off the east coast of India in the Cauvery basin.
Shares in metal companies continued to gain for a second day following a positive reading on China’s manufacturing sector on Thursday.
However,among stocks that fell,Cipla Ltd declined 1.4 percent due to the lack of any major announcements in its annual shareholders meeting on Thursday.