Market rally continues; Sensex jumps 1,000 points in 3 dayshttps://indianexpress.com/article/business/market/market-rallies-for-third-straight-day-sensex-jumps-216-points-5624815/

Market rally continues; Sensex jumps 1,000 points in 3 days

Despite global uncertainties, the 30-share BSE index ended 217 points, or 0.58 per cent, higher at 37,752.17.

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On Tuesday, the Sensex had settled 481.56 points higher.

Stock markets on Wednesday continued their unabated rally for a third day in a row with the Sensex gaining another 217 points on sustained foreign inflows and strengthening of the rupee. With this gain, the Sensex has soared 1,000 points in just three sessions.

Despite global uncertainties, the 30-share BSE index ended 217 points, or 0.58 per cent, higher at 37,752.17. The broader NSE Nifty closed with gains of 40.50 points, or 0.36 per cent, at 11,341.70 even as global investors remained jittery over uncertainties around Brexit developments. On Tuesday, the Sensex had settled 481.56 points higher.

The rupee on Wednesday clocked its third straight gain, rising 17 paise to close at a fresh two-month high of 69.54 against the US dollar on sustained foreign fund flows. Besides, the US dollar’s weakness against its key rivals overseas strengthened forex market sentiment domestically.

However, global investors remained jittery over uncertainties around Brexit developments. British Prime Minister Theresa May suffered yet another defeat in Parliament over Brexit when MPs overwhelmingly rejected her plan to quit the EU, plunging the UK into a further period of political uncertainty just 17 days before its divorce from the bloc.

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Both the rupee and stock markets are riding high on massive liquidity push in the form of strong foreign fund inflows in March. Foreign institutional investors (FIIs) have poured in over Rs 13,700 crore in Indian stocks so far this month. FII inflows into equity markets had crossed Rs 30,000 crore in February and March.

“The Brexit woes added volatility in the market but the euphoria in domestic environment supported the indices to stand positive. Domestic inflation continues to undershoot RBI’s target level while weak industrial growth increased the prospects for further action from RBI. On the global front, the defeat of Theresa May’s latest version of Brexit deal is creating uncertainties in UK’s economic growth while haven asset like gold inched higher,” Vinod Nair, head of research, Geojit Financial Services Ltd, said.

Retail inflation rose to a four-month high of 2.57 per cent in February, and industrial growth slipped to 1.7 per cent on account of manufacturing sector slowdown, according to latest data. Global crude benchmark Brent crude futures rose 0.33 per cent to $66.89 per barrel.

Sectorally, the BSE bankex, finance, realty and energy realty indices rose up to 1.42 per cent. BSE telecom, metal, power, teck and healthcare indices lost as much as 2.60 per cent.

Of the 19 sectoral indices, 13 ended in the red and six closed in the green. Broader markets, however, underperformed benchmarks with BSE mid-cap index falling 0.43 per cent and small-cap shedding 0.31 per cent.

Hong Kong’s Hang Seng fell 0.39 per cent, Shanghai Composite Index was down 1.09 per cent, Korea’s Kospi dropped 0.41 per cent, and Japan’s Nikkei ended 0.99 per cent lower.