Sensex, Nifty snap 3-week losing streak on progress of monsoon
Mumbai: Both indices snapped their 3-week losing streak on renewed buying from operators and investors on hopes of above-average monsoon rain.
The BSE Sensex regained the psychological 27,000 mark and the 50-unit CNX Nifty reclaimed the crucial 8,000 mark.
The 30-share Sensex gained 890.87 points or 3.37 percent to settle at 27,316.17, its highest closing level since June 1, 2015.
The Nifty gained 242.05 points or 3.03 percent to settle at 8,224.95, its highest closing level since June 2, 2015.
The BSE had dropped by 1,532.20 points or 5.48 percent in the previous three weeks and the Nifty had also tumbled by 476.05 or 5.63 percent in the same period.
The BSE Mid-Cap index rose 365.18 points or 3.61 percent to settle at 10,487.12 and the BSE Small-Cap index rose 369.01 points or 3.49 percent to settle at 10,942.79. Both these indices outperformed the Sensex.
Shares of Refinery, Auto, Consumer Durable, Healthcare, Captial Goods, FMCG and Banking sectors were the major gainers of the week.
Data showing acceleration in industrial production growth and easing of food price inflation helped key benchmark indices to register gains.
Besides, expectations that above-average monsoon rain will improve the odds for further monetary policy easing from Reserve Bank of India (RBI) also helped investors’ sentiments.
Reliance Industries (RIL) gained 12.07 percent at Rs 996.50 and was the top gainer during the week. As per reports, a foreign brokerage has retained its buy rating on the stock on expectations of strong Q1 June 2015 earnings following strong gross refining margins.
Meanwhile, the India Meteorological Department (IMD) said that for the country as a whole, the cumulative rainfall during this year’s monsoon season was 11 per cent above the Long Period Average (LPA) until 17 June 2015.
Data released by the government on Monday showed that the annual rate of inflation based on the monthly wholesale price index (WPI) remained in negative zone in May 2015.
WPI inflation was negative 2.36 percent (provisional) for the month of May 2015 compared with a reading of negative 2.65 percent (provisional) for April 2015.
The US Federal Reserve left key interest rates unchanged and Fed Chairwoman Janet Yellen said she wanted “more decisive evidence” that labour markets were healing, and that wages would increase beyond their current “subdued pace.”
Other major gainers were M&M 9.42 percent ONGC 6.16 percent, HUL 5.41 percent, Maruti 5.53 percent, Bajaj Auto 5.25 percent, Wipro 4.80 percent, Bharti Airtel 4.71 percent, Cipla 4.10 percent, Sun Pharma 4.03 percent and HDFC 3.98 percent.
Among the S&P sectoral indices, Oil&Gas rose by 4.98 percent followed by auto 4.87 percent, CD 4.66 percent, HC 4.48 percent, CG 2.92 percent, FMCG 2.69 percent and Bankex 2.04 percent.
The total turnover during the week on BSE and NSE rose to Rs 14,521.82 crore and Rs 71,981.97 crore, respectively from the last weekend’s levels of Rs 10,888.10 crore and Rs 67,957.63 crore.
[“source – zeenews.india.com”]