Sensex gains 303 points: Stocks start the week on a high note, driven by recovery hopeshttps://indianexpress.com/article/business/market/sensex-soars-304-points-nifty-reclaims-10550-mark/

Sensex gains 303 points: Stocks start the week on a high note, driven by recovery hopes

The 30-share BSE Sensex opened on a strong footing at 34,225.72 and maintained its upward trend to hit the day’s high of 34,483.39 before ending at 34,445.75, up 303.60 points, or 0.89 per cent.

Stocks start the week on a high note, driven by recovery hopes
The rupee failed to hold on to its early gains and slipped by 6 paise to end at 64.79 against the US currency due to fag-end dollar demand from importers and corporates. (Photo: Reuters)

Stock markets on Monday rallied for the second session in a row amid optimism over India’s economic growth recovery and positive global cues.

The 30-share BSE Sensex opened on a strong footing at 34,225.72 and maintained its upward trend to hit the day’s high of 34,483.39 before ending at 34,445.75, up 303.60 points, or 0.89 per cent. This level was last seen on February 5, when the Sensex had closed at 34,757.16. The index had rallied 322.65 points in the previous session on Friday on value-buying by investors in recently-battered blue-chip stocks. The Nifty finished the day at 10,582.60, showing a hefty gain of 91.55 points, or 0.87 per cent, after shuttling between 10,592.95 and 10,520.20.

The rupee failed to hold on to its early gains and slipped by 6 paise to end at 64.79 against the US currency due to fag-end dollar demand from importers and corporates.

“The market is gradually recovering lost ground, supported by positive global cues. Investors are waiting for Q3 GDP and IIP data. GDP is expected to grow at 6.9 per cent which has raised a positive sentiment while reducing the volatility in the market,” said Vinod Nair, head of research, Geojit Financial Services.

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Gains were led by realty, auto, capital goods, banking, infrastructure, metals, power, oil & gas, PSU and consumer durables sectors, which rose up to 3.30 per cent. Domestic institutional investors (DIIs) net bought equities to the tune of Rs 1,514.03 crore, while foreign portfolio investors (FPIs) sold shares worth Rs 486.32 crore on Friday, provisional data showed. Maruti Suzuki emerged as the leader of the Sensex pack today, with a 3.41 per cent rise, followed by Tata Motors at 3.22 per cent. “Relief from the speculations over US Fed rate hikes led a sharp rally across the global markets, triggering positivity in the domestic indices as well. Benchmark bond yields have dropped and focus has shifted to equities as the tax overhaul in the US is expected to deliver more ‘fiscal stimulus’ to the economy. The rupee appreciation also boosted the domestic sentiments, but the IT sector lacked impetus following further tightening of H1B visa procedures,” said an analyst.

The small-cap and mid-cap indices rose 0.88 per cent and 0.74 per cent. Shares of scam-hit Punjab National Bank lost another 1.32 per cent. Gitanjali Gems too slumped 4.84 per cent to Rs 23.60. Shares of Simbhaoli Sugars plunged 15.73 per cent today after CBI registered a case against the company, its chairman Gurmit Singh Mann, deputy MD Gurpal Singh and others in connection with an alleged bank loan fraud of Rs 97.85 crore. The company’s lender Oriental Bank of Commerce also fell by 10.02 per cent.