Home ECONOMY Sensex closes over 200 points up; bank stocks rise

Sensex closes over 200 points up; bank stocks rise

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Mumbai, June 19:

A day after it surged more than 280 points, a barometer index of the Indian equities markets continued its upward trajectory and closed more than 200 points up in the trade session on Friday.

Sensex UpThe 30-scrip Sensitive Index (Sensex) of the S&P Bombay Stock Exchange (BSE) gained 200.34 points or 0.74 percent during the day’s trade.

The wider 50-scrip Nifty of the National Stock Exchange (NSE) also made gains during the day’s trade. It closed 50.35 points or 0.62 percent up at 8,224.95 points.

The Sensex, which opened at 27,207.76 points, closed the day’s trade at 27,316.17 points, up 200.34 points or 0.74 percent from the previous day’s close at 27,115.83 points.

The Sensex touched a high of 27,404.60 points and a low of 27,202.38 points in the intra-day trade.

Analysts tracking the markets said that after opening with a positive gap, the exchanges witnessed selective buying in banking and auto stocks ahead of the F&O (futures and options) expiry.

“India is rolling ahead with further sustenance in the global market and underperformance of stocks in China. In the meantime, India has got better than expected monsoon, CPI (consumer price index) numbers and increase in MSP (minimum support price),” said Vinod Nair, head of fundamental research with Geojit BNP Paribas Financial Services.

“To continue this sustenance in India, we need to see better government spending and lower interest rate,” Nair added.

Gaurav Jain, director with Hem Securities, said: “The continued buying during the full weak by the domestic investors pushed the indices higher. Above average monsoon showers so far and continued strengthening of rupee improved the investor’s confidence. Firm global cues barring Chinese market too supported.”

On Thursday, the barometer index closed the day’s trade more than 280 points up a day after the US Federal Reserve decided not to raise interest rates in June.

The Fed slashed interest rates to zero percent in December 2008 to help rejuvenate the battered economy.

The US Fed’s stand that the rate hike might take place in the later part of the year might effect the Indian markets.

With higher interest rates in the US, the FPIs (Foreign Portfolio Investors) are expected to be led away from the emerging markets such as India.

During the trade on Friday, healthy buying took place in the banking, automobile, oil and gas, fast moving consumer goods (FMCG) and capital goods stocks.

However, realty and power scrip came under selling pressure.

The S&P BSE banking index augmented by 174.82 points, followed by the automobile index which edged higher by 109.84 points, oil and gas index rose by 107.93 points, FMCG index increased by 56 points and capital goods index was up by 54.08 points.

The S&P BSE realty index lost 10.26 points and power index slipped by 4.32 points.

The major Sensex gainers in Friday’s trade were: Mahindra and Mahndra, up 4.53 percent at Rs.1,308.50; Maruti Suzuki, up 2.75 points at Rs.3,960; HDFC, up 2.29 percent at Rs.1,237.45; ONGC, up 2.02 percent at Rs.318.95; and Reliance Industries, up 1.78 percent at Rs.996.50.

The major Sensex losers were: Tata Motors, down 2.82 percent at Rs.432.90; Tata Power, down 1.30 percent at Rs.72.15; Sun Pharma, down 0.94 percent at Rs.846.55; Gail, down 0.91 percent at Rs.395.05; and BHEL, down 0.66 percent at Rs.241.50.

Among the Asian markets, Japan’s Nikkei closed higher by 0.92 percent. However, China’s Shanghai Composite Index fell by 6.36 percent, while Hong Kong’s Hang Seng was up by 0.25 percent.

In Europe, the London FTSE 100 index rose by 0.46 percent, the French CAC 40 gained by 1.33 percent and Germany’s DAX Index was up by 1.09 percent at the closing bell here.