Sensex adds to gains for second day, Nifty hits 15-month high

Shares also got a boost after the US Federal Reserve said near-term risks to the US economic outlook had diminished, but gave no firm indication of whether it would raise rates at its next policy meeting in September. There was short-covering by participants as it was the last trading session of the July series of derivative contracts.

Among BSE sectoral indices, consumer durables index was the star-performer and was up 2.3 per cent, followed by FMCG 1.5 per cent, realty 0.95 per cent and auto 0.81 per cent. On the other hand, capital goods index was down 0.84 per cent, metal 0.74 per cent and oil & gas 0.12 per cent.

Anand James, Chief Market Strategist, Geojit BNP Paribas Financial Services, said, “more positive rhetoric on GST helped stocks wade through the bearish sentiments prevailing at open after FOMC hinted at increasing appetite towards a rate hike this year. But the low F&O rollovers suggest that sharp spikes recently may have prompted a wait and watch approach, especially with the outcome of both GST and the RBI monetary policy will be out in less than a fortnight.”

According to another analyst, the market rally was aided by green shoots from earnings and the positive roll over ahead of F&O expiry. The US Federal Reserve has maintained a status quo on the interest rate which kept foreign investors to remain in emerging markets like India.