Tuesday, Oct 21, 2014

Sensex soars 314 pts as oil drops, optimism rises over budget

After a higher start, the 30-share BSE index rallied to to touch intra-day high of 25,460.96 before settling at nearly two-week high of 25,413.78, clocking a rise of 313.86 points. (Reuters) After a higher start, the 30-share BSE index rallied to to touch intra-day high of 25,460.96 before settling at nearly two-week high of 25,413.78, clocking a rise of 313.86 points. (Reuters)
Press Trust of India | Mumbai | Posted: June 30, 2014 4:51 pm

 

Fall in global oil prices and optimism over the first Budget of the Narendra Modi-led government pushed up the benchmark Sensex today by 314 points to close at 25,413.78, wrapping up one of the best quarters in recent years.

Power, capital goods, PSUs, banking, consumer durables, healthcare, metals, auto and IT led the rally on expectations of strong reforms in these sectors in the next week’s Budget.

After a higher start, the 30-share BSE index rallied to to touch intra-day high of 25,460.96 before settling at nearly two-week high of 25,413.78, clocking a rise of 313.86 points, or 1.25 per cent. Of 30 Sensex scrips, 24 scrips rose.

The gauge had gained 37.25 points on Friday.

For the quarter ended June 30, the Sensex rose 3,027.51 points or 13.5 per cent on the back of robust inflows as the BJP government stormed to power at the Centre after polls.

The BSE index gained about 1,196 points in June month.

Brokers said besides easing global crude oil prices as fears of supply disruption from Iraq receded, expectations that the reform measures in the next week’s Union Budget will boost the country’s economic growth, bolstered sentiments.

“Volatility and profit booking is visible ahead of upcoming Budget for 2014-15,” said Rakesh Goyal,Senior Vice President,Bonanza Portfolio.

The 50-share Nifty of the National Stock Exchange reclaimed the crucial 7,600 mark by rising 102.55 points, or 1.37 per cent, to close at 7,611.35. It touched a high of 7,623.65 and a low of 7,531.60.

Global oil prices eased on softer US demand, traders say.

US benchmark West Texas Intermediate for August delivery fell 26 cents to USD 105.48 and Brent crude eased 22 cents to USD 113.08 per barrel.

Stocks of state-run oil companies saw good activity. BPCL climbed 5 per cent, HPCL gained 4.7 per cent, IOC was up 3.7 per cent and GAIL rose 1.4 per cent. The ONGC counter finished over 3 per cent higher.

Stocks of power and capital goods were among top gainers.

Buying in small-cap and mid-cap shares among investors helped prop up the market, brokers said.

 

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