Sensex rises 154 pts as metal, auto stocks lead rally
Rising for the second straight session, benchmark Sensex on Monday gained 154 points to end at 27,395.73 powered by a rally in metal, auto and consumer durable shares on growth optimism, amid strong Asian cues.business Updated: Dec 29, 2014 17:38 IST
Rising for the second straight session, benchmark Sensex on Monday gained 154 points to end at 27,395.73 powered by a rally in metal, auto and consumer durable shares on growth optimism, amid strong Asian cues.
The 30-share BSE index, which had gained 33.17 points in the previous session, advanced by 153.95 points, or 0.57%, to close at 27,395.73 points. It touched a day's high of 27,507.25 points at the outset but profit-taking towards middle of session made it touch a low of 27,266.49.
The 50-scrip National Stock Exchange index Nifty rose by 45.60 points, or 0.56%, to close at 8,246.30 points.
India's economic growth is expected to pick up in the current fiscal and will be "much better" in 2015-16, finance minister Arun Jaitley said on Monday.
Brokers said market sentiment also improved after data showed that foreign funds -- which had been net sellers on the Indian markets for 12 straight sessions -- turned buyers.
Metal stocks gained on buzz that government will take the ordinance route soon to pave the way for auction of iron ore and other minerals as the proposed amendments to the MMRDA Act have been pending since long.
A firming trend at other Asian markets on reports that China had unveiled fresh measures to boost the economy and a higher closing on the US markets on Friday also influenced the market sentiment to some extent, brokers added.
"Firm global cues and ...continuous inflow from the FIIs, added to the positivity," said Jayant Manglik, President -Retail distribution, Religare Securities.
Twenty five Sensex components, led by Sesa Sterlite, Hindalco, Coal India, Tata Steel, Tata Motors, Hero MotoCorp, Sun Pharma and BHEL helped the benchmark end in positive terrain. However, five stocks including Bharti Airtel, ICICI Bank, M&M, Axis Bank and SBI closed with losses.
Sectorally, the BSE Metal index gained the most rising by 2.36%, followed by the auto index that rose by 1.50%. Consumer Durables index rose by 1.02%, Healthcare Index by 0.87%, FMCG index by 0.77% and Power index by 0.76%, Oil & Gas index by 0.69% and IT index by 0.68%.
Buying activity also gathered momentum in the midcap and smallcap stocks, lifting indices by up to 0.87%.