Helped by a smart rebound in rupee after current account gap moderated sharply,the S&P BSE Sensex today surged by 324 points to end at one-week high of 18,875.95 on strong gains in RIL,HDFC Bank and Infosys.
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Hectic short-covering activity on last day of June derivative series as well as hopes of US Fed possibly delaying the planned tapering of monetary stimulus,also boosted the Indian markets,traders said. Investor wealth rose by over Rs 1 lakh crore as overall more than 1,200 stocks gained.
The BSE 30-share gauge resumed higher following firm Asian cues triggered by strong rally on Wall Street yesterday and remained in positive terrain before settling at 18,875.95,a rise of 323.83 points or 1.75 per cent. This is its highest close since 19,245.70 on June 19.
Yesterday,Sensex had slipped by 77 points.
Buying today was seen in front-line,mainly index-based,stocks while second-line counters underperformed the Sensex on lack of major support from retail investors.
Out of the 30-scrip Sensex,20 stocks closed with gains led by ONGC gaining 4.14 per cent. Reliance Industries surged by 3.48 per cent and Infosys jumped by 3.31 per cent.
Overall,11 out of 13 sectoral indices closed in the green while only BSE-CD and BSE-CG ended with losses. Shares from refinery,IT,Teck,pharma,realty and banking segments were at the forefront of the recovery.
Similarly,the wide-based National Stock Exchange index Nifty gained 93.65 points,or 1.68 per cent,to close at 5,682.35. Also,SX40 index,the flagship index of MCX-SX,closed 170.48 points,or 1.54 per cent higher at 11,219.19.
Recovery in the rupee value today to 60.2 levels from historic closing low of 60.72 yesterday after CAD moderated “sharply” to 3.6 per cent of GDP in March quarter of 2012-13 fiscal compared to 6.7 per cent in December quarter,soothed frailed nerves of investors.
“Release of the balance of payments data two days ahead of schedule suggests that the RBI is trying to calm markets following USD/INR breaching 60 yesterday evening,” said Sonal Varma,India economist,Nomura.
According to Amar Ambani,Head of Research at IIFL,the current account deficit figure has come in above expectations. “The street was expecting the deficit to worsen to 4.4 per cent of GDP,given the global picture.”
Globally today,barring China,which ended slightly lower,other Asian stocks finished higher on hopes the US Federal Reserve will maintain its bond purchases for a longer period of time after US first-quarter GDP growth was revised down to 1.8 per cent from 2.4 per cent.
Key indices in Hong Kong,Japan,Singapore,South Korea and Taiwan moved up by 0.50 per cent to 2.96 per cent.
European stock markets were trading mixed in their early trade. Germany’s DAX and the UK’s FTSE inched up by 0.07 per cent and 0.36 per cent respectively while France’s CAC eased by 0.10 per cent.
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Speaking on Indian markets,Kishor P Ostwal,CMD,CNI Research said: “…The market was oversold and today was the last day of the settlement hence short covering was expected. Next resistance for Nifty is 200 DMA at 5812 if we cross and
sustain then we can expect market to test new high.”
In Sensex,major gainers were ONGC (4.14 pc),TCS (3.85 pc),HDFC Bank (3.62 pc),Sun Pharma (3.54 pc),RIL (3.48 pc),Dr Reddy’s Lab (3.39 pc),Infosys (3.31 pc),Sterlite Ind (2.92 pc),Bajaj Auto (2.9 pc) and HDFC (2.7 pc).
M&M (2.42 pc),Cipla (2.07 pc),Hindalco (1.37 pc) and Tata Power (1.12 pc) also saw good gains.
However,Maruti Suzuki dropped by 1.61 per cent,followed by Tata Motors (1.35 pc) and NTPC (0.53 pc).
“Concrete positive triggers are needed to push the index upwards with confidence,particularly when FII outflows has been witnessed in last couple of weeks,” said Nidhi Saraswat,Senior Research Analyst,Bonanza Portfolio.
Among the sectoral indices,S&P BSE-Oil&Gas rose by 3.22 as RIL,ONGC and Oil India gained ahead of a CCEA meeting to consider doubling of natural gas prices. Other gainers were S&P BSE-IT (3.15 pc),S&P BSE-Teck (2.7 pc),S&P BSE-HC (2.49 pc),S&P BSE-Realty (1.8 pc) and S&P Bankex (1.5 pc).
However,S&P BSE-CD dropped by 1.08 per cent.
Total turnover rose to Rs 1,647.01 crore from Rs 1,490.82 crore yesterday.