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BW Businessworld

Sensex Up Over 1% On Strong Factory Data

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 The BSE Sensex rose over 1 per cent on Monday (15 June), bucking a softer trend in global markets as blue chips slipped on strong factory and stable inflation data, while value buying after three consecutive weekly declines also helped.
 
India's factory output grew more than expected in April, reaching a two-month high, and retail inflation edged up, while wholesale prices fell at an annual rate of 2.36 percent in May, easing concern over an economy facing the worst drought since 2009.
 
Gains were however led by either defensive or exporters as investors remain worried about the prospect of a second straight year of drought for the first time in nearly three decades after the country's weather office forecast below-average rains this summer.
 
"Strong monsoons would again bring the focus on strong internals of the Indian economy," said G. Chokkalingam, founder of Equinomics, a Mumbai-based research and fund advisory firm.
 
The Sensex gained 1 percent, while the Nifty rose 0.8 percent, heading towards their second consecutive session of gains.
 
Stocks considered defensives and export-oriented shares led the gains.
 
Sun Pharmaceutical Industries  gained 3.9 per cent, heading towards its biggest daily gain since April 2015.
 
India's biggest cigarette maker ITC  rose 1.6 per cent, while Tata Motors <TAMO.NS> advanced 1.2 percent.
 
Among software exporters, HCL Technologies  rose 2.4 per cent and Wipro <WIPR.NS> gained 1.6 percent.
 
Reliance Industries  also rose 1.3 per cent, adding to Friday's 1.44 percent gains, after the company said it would commercially start 4G telecommunication services around December, offering a timeline for the launch of a key diversification move that investors have long awaited.

(Reuters)


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