Sensex rises for second consecutive day, rallies 181 points
Equities jumped for the second consecutive day on Tuesday as the benchmark Sensex climbed over 181 points to close at a fresh 11-month high of 27,808 on sustained capital inflows ahead of key macro data of IIP and CPI inflation.business Updated: Jul 12, 2016 18:24 IST
Equities jumped for the second consecutive day on Tuesday as the benchmark Sensex climbed over 181 points to close at a fresh 11-month high of 27,808 on sustained capital inflows ahead of key macro data of IIP and CPI inflation.
The NSE Nifty too got past its key 8,500-mark.
Asia rallied on the back of an overnight record close in the US following last week’s strong US jobs data. Europe also started off on a higher note on hopes that more stimulus from central banks are on the way to contain the Brexit fallout.
Back home, prospects of encouraging Q1 earnings numbers, an above-normal monsoon so far and its progress, and hopes of the GST Bill passing the Rajya Sabha muster in the upcoming monsoon session accelerated buying activity.
There is considerable buzz among investors on likely announcement of the government of a new RBI governor in the next few days.
The Sensex surged 181.45 points, or 0.66%, to end at a new 11-month high of 27,808.14 on widespread gains ahead of release of key macroeconomic data -- IIP for May and Consumer Price Index-based inflation (CPI) for June.
The gauge had soared almost 500 points in Monday’s trade on across the board buying amid positive global cues.
The broader NSE Nifty recaptured the 8,500-mark and ended at 8.521.05, up 53.15 points or 0.63%. Intra-day, it moved between 8,526.60 and 8,479.20.
Both indices closed at their highest levels in 11 months.
“The market extended gains as the expectation of stimulus from various global central banks aided the rally. Good monsoon and hope of positive start of earnings season will be key triggers, going forward,” said Vinod Nair, head of research, Geojit BNP Paribas Financial Services.
In the the 30-share Sensex pack, 19 ended higher and 1 remained unchanged. ICICI Bank took the top spot, surging 4.68%, followed by Tata Steel 4.63%.
Other big movers of the day are Axis Bank (3.03%), Maruti Suzuki (2.27 %), HDFC (1.50 %), ONGC (1.20 %) and RIL (1.15 %).
Staffing firm Quess Corp made a spectacular debut at the bourses on Tuesday by surging 58.71 % to Rs 503.10 as against the issue price of Rs 317.
Among sectoral indices, metal rose the most by 2.87 % followed by realty 2.02 %, banking 1.62 %, infrastructure 1.06 %, consumer durables 0.91 %, auto 0.57 %, oil & gas 0.41 % and capital goods 0.25 %.
Meanwhile, foreign portfolio investors (FPIs) bought shares worth a net Rs 1,055.80 crore on Monday, as per provisional data.
Broader markets continued to display a firm trend as retail investors mounted more bullish bets, with the BSE mid-cap index rising 0.49 % and small-cap 0.08 %.
Japan’s Nikkei climbed 2.46 % and Hong Kong’s Hang Seng 1.65 % while Shanghai Composite surged 1.82 %.
Europe was trading in the positive terrain too in the early session, with the UK’s FTSE, Frankfurt’s DAX and Paris’ CAC advancing by up to 0.2 %.