Sensex logs gains for 5th day in choppy trade, up 72 points
Adding to its rally for the fifth straight session, the benchmark Sensex surged about 117 points in early trade on Monday as investors went in for more bets amid upbeat fourth quarter numbers and on monsoon hopes.business Updated: May 30, 2016 18:25 IST
The Sensex landed in the positive zone for the fifth straight day on Monday by gaining 72 points to 26,726 -- a seven-month high -- as March quarter earnings broadly stayed above expectations.
A positive update about an above-normal monsoon this year, which is seen to rub off on the overall consumer demand, brightened economic prospects.
A steady stream of foreign fund inflows and a firm trend overseas kept sentiment alive, which made investors bolster their positions further.
Global cues too aligned as Asian markets rallied and Europe opened higher even as US Fed chief Janet Yellen on Friday said the central bank may raise rates “in coming months” as the economy picked up as expected and jobs continued to be generated.
In a choppy trade, the Sensex opened higher, but profit-booking pulled it down. Finally, it settled at 26,725.60, a gain of 72 points, or 0.27% -- its highest closing since October 29 last year.
Last week, the Sensex rallied 1,352 points, or 5.31%, and Nifty zoomed 407 points, or 5.25% --their biggest weekly gain since March on the back of earnings show and continued foreign inflows.
Also, the Nifty, after retesting the crucial 8,200-mark during early trade, closed higher by 21.85 points, or 0.27%, at 8,178.50.
Foreign portfolio investors (FPIs) purchased shares worth a net Rs 479.89 crore last Friday, according to provisional data.
In the Sensex pack, Tata Motors was the biggest mover, gaining 4.23%, followed by Coal India (3.80%). The coal behemoth announced on Sunday nearly 6.3% increase in dry fuel prices and posted a marginal rise in net profit for the fourth quarter. \
Hero MotoCorp, TCS, NTPC and Dr Reddy’s, ITC and Bajaj Auto all gained up to 3.02%. BHEL plunged the most by falling 5.81% after the company’s net profit declined 59.5% in the fourth quart ended March 2015-16.
Aluminium maker Hindalco surged over 11% after its standalone net profit more than doubled for the fourth quarter.
In the 30-share Sensex team, 17 added to their gains. The BSE metal index led the charge, climbing 2.28%, followed by IT 1.33%, technology 1.17% and auto 1.11%.
In sync with the overall trend, the broader markets too continued to display a firm trend, with the small-cap index rising 0.42% while mid-cap rose 0.35%.
In the rest of Asia, Japan’s Nikkei ended 1.39% higher boosted by hopes that the government will delay a sales tax hike while Hong Kong’s Hang Seng firmed up 0.26%.
Shanghai Composite Index ended 0.05% higher. European markets too were trading in the positive zone, tracking gains across most of Asia.