Sensex rebounds 271 points on insurance bill hopes, IMF upgrade
Equities rebounded from 1-month lows on Thursday with benchmark Sensex surging 271 points, its first rise in four sessions, as investors went on a buying spree in beaten-down shares enthused by IMF upping India growth forecast and on hopes of insurance bill passage in Parliament.business Updated: Mar 12, 2015 17:53 IST
Equities rebounded from 1-month lows on Thursday with benchmark Sensex surging 271 points, its first rise in four sessions, as investors went on a buying spree in beaten-down shares enthused by IMF upping India growth forecast and on hopes of insurance bill passage in Parliament.
Buying was also seen ahead of macro data release like IIP for January and retail inflation for February later today.
The BSE Sensex rallied 271.24 points to end at 28,930.41 and the NSE Nifty reclaimed its 8700-mark as it gained 76.05 points to end at 8,776.00. Fears over an imminent rise in US interest rates had wreaked havoc in global financial markets recently.
Indian benchmark indices cracked about 2.7 per cent in three days. Analysts said passage of the insurance bill could raise optimism that other stalled reforms would also move ahead. While the government has promulgated an ordinance to hike FDI in insurance business from 26% to 49%, a bill in this regard is scheduled to be tabled in Rajya Sabha on Thursday.
The bill was passed by the Lok Sabha last week. After a strong start, key indices maintained its buoyancy throughout as confident investors lapped up shares in power, realty, consumer durables, FMCG, capital goods and auto.
Additionally, mid-cap and small-cap stocks surged. "Besides firm Asian markets, sentiments were up-beat with IMF's latest report raising its forecasts of India's economic growth to 7.2% in the current fiscal year, compared to 5.6% predicted earlier," said Jayant Manglik, President-retail distribution, Religare Securities.
The Sensex opened higher at 28,798.61 and traded between 28,971.01 and 28,772.71 before concluding at 28,930.41, showing a smart rise of 271.24, or 0.95%.
The 50-share broader CNX Nifty also bounced back by 76.05 points, or 0.87% to end at 8,776.00. Shares linked to insurance saw good activity with Reliance Capital leading the charts with over 10% gains.
Max India, Aditya Birla Nuvo and Bajaj Finserv also moved up. The dollar edged closer towards parity with the euro on Thursday in the backdrop of the European Central Bank kicking off its stimulus programme this week, while Asian equity markets recovered slightly from a recent sell-off.