The BSE Sensex on Friday regained the 28,000 mark and rose by 147 points largely on account of higher government spending and renewed buying by Foreign Institutional Investors(FIIs).
Market sentiment was largely optimistic following upbeat comments from the Reserve Bank Governor Raghuram Rajan. In a statement on Thursday, Rajan said that the economy is picking up and was in a recovery phase and also the country can withstand any crisis emerging from the Greek fallout.Strengthening of rupee, which climbed to nearly two-month high also bolstered confidence.
Meanwhile, to improve farm productivity, the government has decided to spend Rs 50,000 crore over the next five years under the Pradhan Mantri Krishi Sinchai Yojana (PMKSY). "Markets shut on a strong note adding buying till the last leg on the optimism that Greece crisis will be resolved and it will not impact much on Indian equities. Renewed buying from foreign investors after the last month selling too boosted sentiment," said Gaurav Jain, Director of Hem Securities.
As per provisional data, foreign investors bought shares worth Rs 575.3 crore yesterday. Despite better start, bourses turned rangebound amid bouts of profit taking at higher levels tracking weak Asian European cues as well as some caution due to Sunday's Greek referendum hovering the sentiment.
After a hesitant start, the 30-share Sensex regained the 28,000-mark to hit the day's high of 28,135.43 before settling at 28,092.79, a recovery of 146.99 points or 0.53 %. The 50-share broader Nifty surged 40.00 points or 0.47 % to close at 8,484.90 after hovering between 8,497.75 and 8424.15 during the session.
On weekly basis, Sensex and Nifty has gone up by 280.95 points (1.01 %) and 103.80 points (1.23%), respectively, completing their third straight weekly gain. "Government's announcements on agri sector caps cap a positive week for Indian market, which has seen economic data showing improvement in capex and core sector growth, and also key project announcements from the government," said Anand James, Co Head Technical Research Desk at Geojit BNP Paribas.
Asian equities today ended mixed on the back of dismal US employment data overnight with Shanghai market tumbling 6 % on market regulatory probe following recent crash.