Extending gains for the third day,the S&P BSE Sensex today surged 290 points to end at 19,270 on the back of FII buying in banking,capital goods and refinery shares amid recovery in the Indian rupee to the US dollar.
After surging 739 points in the last two sessions,the Sensex rose by 290.30 points,or 1.53 per cent,to 19,270.06 as 20 stocks in the Sensex stocks closed with gains.
This is the second week of gains for the 30-share index which jumped by 650.28 points or 3.49 per cent.
The broad-based NSE Nifty today rose by 87.45 points,or 1.56 per cent to 5,680.40. Also,MCX-SX’s SX-40 index rose 183.35 points to settle at 11,391.56.
“After new RBI Governor Raghuram Rajan announced a number of measures which will boost the currency as well as economy,investor confidence have been revived and buying from lower levels is being seen,” said Rakesh Goyal,Senior Vice President,Bonanza Portfolio Limited.
Brokers said continuing recovery in the rupee versus dollar also boosted equity markets. Rupee was trading at 65.2 levels compared to yesterday’s close of 66.01.
Sectorally,the banking sector index gained the most by 2.89 per cent to 11,333.44 as ICICI Bank surged by 7.3 per cent,HDFC Bank by 1.2 per cent,IndusInd Bank Ltd by 3.5 per cent,Yes Bank Ltd by 1.9 per cent and Axis Bank by 2.8 per cent.
The capital goods sector index was second best performer by gaining 2.77 per cent to 7,443.02,followed by Oil and Gas index by 2.20 per cent to 8,572.54.
The three most heaviest on the Sensex with their nearly 30 per cent weightage – Reliance Industries (RIL) jumped up by 0.73 per cent to Rs 867.55,ITC Ltd by 1.51 per cent to Rs 316.20 and Infosys by 0.41 per cent to Rs 3,014.90.
The market will remain closed on Monday for ‘Ganesh Chaturthi” and reopen for regular trading on Tuesday.
“Looking broadly at the market’s fundamental setup,the falling USD/INR rates are favourable and now the marketmen would keep an eye on the movement of crude oil,” said Nagji K Rita-Chairman & MD,Inventure Growth and Securities.
BSE Sensex gains for third day,ONGC,ICICI Bank shares surge
(Reuters) BSE Sensex rose over 1 percent on Friday to mark its highest close in nearly a month,as bank stocks continued to rise after the central bank’s slew of measures unveiled by new Governor Raghuram Rajan,while oil and gas company ONGC’s shares rose on hopes of a diesel price hike.
The benchmark BSE index provisionally rose 1.33 percent,while the broader NSE Nifty ends 1.44 percent higher,gaining for a third consecutive session on Friday.
Dipen Shah,Head- Private Client Group Research,Kotak Securities: Markets were volatile but ended the week on a high with gains of about 4% on benchmarks. The intention and initiatives of the new RBI Governor helped in changing the sentiments on the currency and equity markets. Banking stocks and other rate sensitive stocks were the major gainers and as a natural corollary,defensive sectors like IT and FMCG under-performed.
The recent appreciation in the Indian rupee against US dollar has improved market sentiments. There are expectations of additional dollar flows into the country,which has created optimism on the rupee. Equity markets have reacted on cues from the currency markets. We need to improve the investment climate and make it attractive for more funds to flow in. Further initiatives on the rupee and on fiscal reforms will help in taking the markets higher. In the near term,the decision of the US Fed on withdrawal of quantitative measures will influence the movement of the rupee.