Sensex Rallies 402 Pts To 2-week High
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Firm Asian cues prompted by strong US jobs data and China's rate cut decision aided the benchmark S&P BSE Sensex to rally by 402 points to end at two-week high of 27,507.30, extending gains for the second straight session.
Similarly, the wide-based CNX Nifty of the NSE also spurted by 133.75 points or 1.63 pct to settle at one-week high of 8,325.25.
Strong US jobs data announced last weekend pointed to economic growth picking up amid China's move to lower interest rates by 25 bps over the preceding weekend for the third time in six months to strengthened its flagging economy, boosted the emerging markets market sentiment, including India.
Turning to local markets, buying was witnessed mainly across the board as 11 out of 12 sectoral indices closed in the green by 0.90 pct and 2.52 pct with metal, auto, banking, CD, healthcare, IT, oil&Gas, power, CG and teck segments taking the lead.
Smart rise in heavyweights like HDFC, SBI, Tata Motors, ICICI Bank, Infosys, Sun Pharma, HDFC Bank, Vedanta, TCS, Axis Bank, L&T and Hero MotoCorp together contributed almost 350 points to the sensex surge.
The BSE-30 share barometer resumed robust and remained in the positive territory throughout the day to settle at 27,507.30, revealing a smart rise of 401.91 points or 1.48 pct. Last Friday, it jumped 506.28 points, or 1.90 per cent, after government's move to allay overseas investors' taxation fears. Earlier, it had ended at 27,735.02 on April 23, 2015.
Second-line stocks, too, were in demand on good buying from retail investors after the recent heavy sell-off.
Meanwhile, Foreign portfolio investors sold shares Rs 437.56 crore and Domestic institutional investors offloaded shares worth Rs 1,114.38 crore last Friday, as per provisional data.
Mr. Jignesh Chaudhary, Head of Research, Veracity Broking Services said,"Local indices continued to trade higher on the investors? confidence and closed on a positive note for the second consecutive day. Indices added over one and half pct as the blue chip companies traded higher on value buying with well supported from strong Asian market. Now traders are eagerly waiting for the series of U.S data lined for the week which will show the road ahead to the market."
Market participants also waiting for the macro economic data and next round of Q4 results for further direction. The government will announced CPI and IIP data during the week.
Globally, excepting Taiwan, which ended in the red, other Asian stocks concluded with gains between 0.51 pct and 3.04 pct.
The US Dow Jones Industrial Average last Friday ended 1.49 per cent higher while the tech-heavy Nasdaq Composite index grew 1.17 per cent.
Back home, 26 out of 30 sensex-based scrips finished with gains while others closed with losses. Major gainers were SBI (5.44 pct), VEDL (5.34 pct), Hero Motocorp (3.59 pct), HDFC (3.16 pct), Tata Motors (3.15 pct), Tata Steel (2.91 pct), Bajaj Auto (2.48 pct), Sun Pharma (2.41 pct), Hindalco (2.19 pct), Icici Bank (2.04 pct), NTPC (1.97 pct), Coal India (1.97 pct), Cipla (1.77 pct), Infosys (1.74 pct), Axis Bank (1.62 pct), Tata Power (1.44 pct) and BHEL (1.41 pct) while HUL fell by 3.34 pct.
Among the BSE sectoral indices, Metal rose by 2.52 pct followed by Auto 2.52 pct, Bankex 2.40 pct, CD 2.27 pct, HC 1.69 pct, Power 1.56 pct, IT 1.34 pct, CG 1.18 pct and Teck 1.12 pct.
Small-cap and Mid-cap indices also rose by 1.28 pct and 2.53 pct respectively.
The market breadth remained positive as 1,760 stocks ended with gains, 969 stocks finished in the red, while 102 ruled steady. The total turnover dropped to Rs 2,718.72 crs from Rs 2,960.28 crore on last Friday.