Home ECONOMY Sensex gains for seventh session; up 414 points

Sensex gains for seventh session; up 414 points

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Mumbai, June 22:

Extending its gains for the seventh straight session, a benchmark index of the Indian equities market, the sensitive index (Sensex) of the Bombay Stock Exchange (BSE), ended the day’s trade with gains of over 414 points on Monday.

Sensex UpThe wider 50-scrip Nifty of the National Stock Exchange (NSE) also closed the day’s trade with gains. It rose by 128.15 points or 1.56 percent at 8,353.10 points.

The Sensex, which opened at 27,427.19 points, closed the day’s trade at 27,730.21 points, up 414.04 points or 1.52 percent from the previous day’s close at 27,316.17 points.

The Sensex touched a high of 27,782.31 points and a low of 27,417.03 points in the intra-day trade.

The barometer index gained 890.87 points or 3.37 percent during the weekly trade ended June 19. The gains have been attributed to the a six-day relief rally that started from June 12.

Market analysts elaborated that the buoyed investor sentiments were supported by a healthy monsoon, rise in crop prices, deferment of a US interest rate hike coupled with good macro-economic data and parleys to resolve the Greece debt crises.

The markets were especially hopeful of the fact that Greece was closer to reaching a deal to avert default. Greek shares rose more than eight percent during the day, this influenced the world equity markets sentiments.

The European markets rose after the Greek prime minister presented a new plan of reforms. Sources claim that the ECB (European Central Bank) has raised an emergency fund for Greece lenders for a third time in less than a week.

“Markets rose on continuing good progress of the monsoon and on optimism that a solution will be found to the Greek stalemate. European markets also rose and supported sentiments,” said Dipen Shah, head for private client group research, Kotak Securities.

Vinod Nair, head of fundamental research, Geojit BNP Paribas Financial Services, pointed out that better-than-expected monsoon, good figures for May retail inflation, increase in crop prices and relief to global risk have renewed hopes for further rate cuts by the Reserve Bank of India (RBI).

On June 2, the RBI highlighted the risk from below normal monsoon, food inflation, increase in crude prices and external environment. Hence after the June 2 cut of 25 basis points, it dismissed the likelihood of further cuts.

“But it’s a surprise that in a short time, we have seen good developments to have further cut,” Nair added.

Gaurav Jain, director with Hem, said that banks were the key drivers for the sharp rise of the index though all the sectoral indices ended in the green.

During the day’s trade on Monday, healthy buying took place in the banking, consumer durables, information technology (IT), automobile, capital goods, healthcare, fast moving consumer goods (FMCG), metal, technology, entertainment and media (TECK) stocks.

The S&P BSE banking index rocketed by 536.27 points, followed by the consumer durables index which zoomed by 250.93 points, IT index rose by 197.70 points, automobile index jumped higher by 186.15 points, and capital goods index was up by 168.11 points.

The S&P BSE healthcare index increased by 111.49 points, FMCG index edged higher by 104.53 points, metal index gained by 104.50 points, TECK index increased by 83.89 points and realty index rose by 68.24 points.

The major Sensex gainers in Monday’s trade were: Axis Bank, up 3.62 percent at Rs.572; ICICI Bank, up 3.46 points at Rs.315.15; Infosys, up 2.77 percent at Rs.1,024.40; HDFC, up 2.50 percent at Rs.1,268.35; and State Bank of India (SBI), up 2.19 percent at Rs.265.85.

The major Sensex losers were: Bharti Airtel, down 2.25 percent at Rs.424.20; Reliance Industries, down 0.52 percent at Rs.991.35; Wipro, down 0.31 percent at Rs.561.35; Lupin, down 0.29 percent at Rs.1,811.10; and ONGC, down 0.16 percent at Rs.318.45.

Among the Asian markets, Japan’s Nikkei closed higher by 1.26 percent, China’s Shanghai Composite Index fell by 6.36 percent, while Hong Kong’s Hang Seng was up by 1.20 percent.

In Europe, the London FTSE 100 index rose by 1.05 percent, the French CAC 40 gained by 2.70 percent and Germany’s DAX Index was up by 2.73 percent at the closing bell here. (IANS)