The BSE benchmark Sensex rallied over 300 points Monday to end at over a six-week high of 35,774.88 as investors widened their portfolios ahead of the RBI’s board meet outcome amid foreign fund inflows. Also, positive cues from other Asian markets and a firm opening in European shares buoyed investor sentiment here.
A crucial meet of the Reserve Bank’s central board is underway amid a rift between the central bank and the government over future course of policies. The finance ministry nominees and some independent directors were expected to take on Patel and his team over issues ranging from MSME credit to the central bank’s reserves, though both sides are in favour of reaching a common ground.
Expectations of a positive outcome boosted market mood after the meeting began.
According to analysts, domestic bourses are focusing on RBI’s board meet to get cues on liquidity crunch with non-banking financial companies (NBFCs) and relaxing norms for state-run banks.
The Sensex started off on a high note at 35,647.62 and continued its upward march to hit a high of 35,818.65 as buying activity gathered momentum. It finally settled 317.72 points, or 0.90 per cent, higher at 35,774.88. This is the benchmark’s highest closing since October 3 when it had closed at 35,975.63. The barometer had gained 315.17 points in the previous two sessions. Also, the broader NSE Nifty raced past the 10,750-mark to touch a high of 10,774.70 before settling at 10,763.40 points, showing a rise of 81.20 points, or 0.76 per cent.
Yes Bank was the star performer among Sensex constituents, jumping 7.19 per cent, its biggest gain in almost three weeks.
ITC, Tata Motors, IndusInd Bank, Vedanta, Sun Pharma, RIL, M&M, Maruti Suzuki, Tata Steel, L&T, Wipro, TCS, Hero MotoCorp, Bharti Airtel, Adani Ports, Kotak Bank, PowerGrid, HDFC Bank, HUL, Infosys, HDFC and Coal India also gained up to 2.77 per cent. However, ONGC, ICICI Bank, SBI, Asian Paints, NTPC, Axis Bank and, Bajaj Auto all succumbed to profit-booking and ended lower by up to 1.37 per cent.
Jet Airways stock plunged 6.88 per cent, after Tata Sons said on Friday that it was only in preliminary talks with the struggling carrier, but had not made a proposal to acquire a stake.
Sectorally, the BSE realty index surged 1.45 per cent, followed by FMCG 1.27 per cent, metal 1.16 per cent, auto 1.05 per cent, capital goods 0.94 per cent, consumer durables 0.91 per cent, healthcare 0.78 per cent, IT 0.63 per cent, teck 0.62 per cent, power 0.60 per cent, infrastructure 0.52 per cent and bankex 0.28 per cent. While, PSU and oil and gas indices ended in the negative zone. Broader markets too showed strength in line with overall trend, with the small-cap index rising 0.67 per cent and mid-cap index gaining 0.47 per cent.
Strong rupee and fall in oil prices provide leeway to India macros and consequently influence foreign institutions to change their stance towards emerging markets, experts said. Meanwhile, foreign institutional investors (FIIs) bought shares worth a net of Rs 844.82 crore on Friday, while domestic institutional investors (DIIs) sold shares worth a net of Rs 372.24 crore, provisional data showed.
Elsewhere in Asia, Shanghai Composite Index rose 0.91 per cent, Japan’s Nikkei gained 0.65 per cent, Singapore up 0.95 per cent, Hong Kong’s Hang Seng advanced 0.45 per cent and Taiwan index rose 0.32 per cent. Key indices in European markets such as Frankfurt’s DAX rose 0.34 per cent, Paris CAC 40 0.27 per cent, while London’s FTSE gained 0.22 per cent in their respective morning sessions.