BSE Sensex soars 182 pts on FIIs,monsoon hope,Maruti Suzuki shares rally

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Sensex resumed lower at 19,352.48,but recovered afterwards to touch day’s high of 19,598.43 before ending at 19,577.39,a net gain of 181.58 points or 0.94 per cent. This is Sensex’s highest close since 19,610.48 on June 3. It has surged by 1,025.18 points or 5.53 per cent in 3 sessions.

Similarly,the wide based National Stock Exchange index,the NSE Nifty,closed 56.65 points,or 0.97 per cent higher at 5,898.85. Also,SX40 index,the flagship index of MCX-SX,rose by 126.46 points,or 1.10 per cent,at 11,620.81.

Shares of realty,power,capital goods,FMCG,metal and auto sectors firmed up on good buying while IT stocks suffered losses on fears that Infosys may scale down its FY’14 revenue guidance.

Brokers said energy stocks,led by heavyweight Reliance Industries,continued their upward march after the government last week agreed to hike natural-gas prices.

Major Sensex gainers were RIL,which closed 2.43 per cent higher at Rs 882.80 and Larsen and Toubro up 3.26 per cent at Rs 1,449.95. Tata Power rose by 2.73 per cent to Rs 88.40 after the company raised its tariff and NTPC jumped up by 2.78 per cent to Rs 147.70.

Sentiment also received a boost after Foreign Institutional Investors (FIIs) turned net buyers and bought shares worth a net Rs 1,124.31 crore on last Friday as per provisional data from bourses. Foreign funds snapped a 13-day long selling streak and turned net buyers in the last two sessions,traders added.

Asian stocks ended mixed while European indices were trading higher in afternoon trade.

Key indices in China and Japan closed higher as the Bank of Japan quarterly tankan survey showed an improvement in sentiment in both large manufacturers and non-manufacturers.

However,indices from Singapore,South Korea and Taiwan finished lower. The Hong Kong markets were closed to mark the anniversary of the territory’s handover from the UK to China.

European stock markets were trading narrowly mixed as indices in Germany’s DAX and the UK’s FTSE eased by 0.39-0.52 per cent while France CAC inched up by 0.40 per cent.

Back home,stocks rose on hopes of economic recovery gaining further ground.

On Indian economy,Bank of America Merrill Lynch said: “We are relieved to report that the monsoon,37 percent above normal,is progressing well. Met has… forecast that critical sowing months of July and August will also see good rains.”

After a slew of energy reform efforts last month,hopes are running high that the government will unleash another round of policy measures that will help the economy return to high-growth trajectory,said fund mangers.

Kishor P Ostwal,CMD,CNI Research Ltd. said,” Market continued its march of last two sessions completing a record rally of 1000 points on Sensex…. News flow did add fuel.”

24 scrips out of the 30-share Sensex finished with gains. Major gainers were Maruti Suzuki (4.37 pc),Sterlite Ind (3.89 pc),Gail India (3.27 pc),L&T (3.26 pc),SBI (3.17 pc),Tata Motors (2.91 pc),Jindal Steel (2.81 pc),NTPC (2.78 pc),Tata Power (2.73 pc),BHEL (2.58 pc),Tata Steel (2.48 pc),RIL (2.43 pc),Dr Reddy’s (2.39 pc) and Hero MotoCorp (2.18 pc).

However,Infosys dropped by 1.83 per cent and TCS by 1.76 per cent.

Among the sectoral indices,S&P BSE-Realty dropped by 5.26 per cent,followed by S&P BSE-Power (2.77 pc),S&P BSE-CG (2.77 pc),S&P BSE-FMCG (2.11 pc),S&P BSE-Metal (1.97 pc),S&P BSE-Auto (1.86 pc),S&P BSE-Oil&Gas (1.56 pc),S&P BSE-PSU (1.46 pc),S&P BSE-HC (1.23 pc) and S&P BSE-CD (1.21 pc).

Total market breadth was positive as 1,611 stocks ended up while 768 finished down. 127 stocks ruled steady. Total market turnover fell to Rs 1,719.26 crore from Rs 1,985.62 crore on last Friday. Market capitalisation of BSE traded scrips ended at Rs 64.97 lakh crore.