Sensex races to 11-month high on global cues, Nifty above 8,400

  • PTI, Hindustan Times, Mumbai
  • Updated: Jul 11, 2016 17:13 IST
File photo of the Bombay Stock Exchange building in Mumbai. (Reuters)

Markets put up a strong rally on an across-the-board buying frenzy, lifting the Sensex about 500 points to close at 11-month high of 27,627 and the Nifty above 8,400 amid robust global cues.

For the Sensex, it’s the biggest single-day gain in over a month.

The sentiment got a big push following a rally in global equities as investors cheered a strong US jobs report while a landslide victory for Japan’s ruling coalition in weekend elections boosted stimulus hopes.

The investor focus now shifts to the first leg of corporate earnings. TCS and Infosys are slated to come out with their results on Thursday and Friday, respectively.

Monsoon’s coverage of most part of India and a stronger possibility of passage of the deadlocked GST Bill in Rajya Sabha gave more reasons to cheer.

After opening higher, the Sensex ended at an 11-month high of 27,626.69, up 499.79 points, or 1.84% – its biggest single-day gain since May 25 when it had risen 575.70 points.

Monday’s closing is highest since August 19 last year when it ended at 27,931.64.

The 50-share NSE Nifty recaptured the 8,400-mark before closing at 8,467.90, a gain of 144.70 points, or 1.74%.

Metals led the rally, followed by auto, banking, PSU and realty. Covering-up of short positions fed the upsurge.

Most other Asian markets closed on a strong footing following strong weekend rally in the US.

Japan’s Nikkei remained at the forefront, jumping 3.98%, followed by Hong Kong’s 1.54%, Singapore’s 0.97% and the Shanghai Composite’s 0.23%.

European bourses are too trading firmly higher, with Frankfurt’ DAX up 1.20 per cent, Paris CAC 0.70% and UK’s FTSE 0.70%.

Meanwhile, FPIs net bought shares worth Rs 330.62 crore on Friday, as per provisional data from the stock exchanges.

The domination was near complete, as 29 scrips out of 30-share Sensex pack ended higher while Axis Bank closed lower.

Adani Ports was the top gainer by rising 4.78%.

Tata Motors went up 4.15% after the company’s Jaguar Land Rover reported 22% jump in global retail sales in first half the year.

So did ICICI Bank (3.44%), SBI (2.84%), Maruti Suzuki (2.84%), Coal India (2.84%), Tata Steel (2.72%) and Hero MotoCorp (2.52%).

Among BSE sectoral indices, metal rose the most by 2.46%, followed by auto 2.19%, banking 2.07%, PSU 2.06% and realty 2.05%.

Mid-cap and small-cap firmed up 1.49 and 0.79%, respectively, on fresh buying by retail investors.

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