Sensex logs year’s biggest gain, surges 270 pts on global cues
Amid rate cut hopes and positive global cues, the benchmark Sensex of the Bombay Stock Exchange on Friday rose 270 points, 1.4%, to 19,683 — the biggest gain in 2013 so far. The Sensex has gained 4% this week.
The Nifty also rose 82 points, or 1.4%, to 5,946.
The rally was led by metal, oil & gas and fast-moving consumer goods (FMCG) stocks.
A positive jobs report from the US, better-than-expected Chinese exports and Japan’s return to growth in the fourth quarter also helped boost Asian and European markets.
“Positive global cues and expectations of further reforms from the government improved sentiments,” said Dipen Shah, research head, Kotak Securities.
While Jet Airways gained 10% on news of Abu Dhabi’s Etihad buying 10-12% stake in the Naresh Goyal-led firm, state-run oil firms rose on the government seeking Parliament approval for Rs. 24,774 crore in oil subsidies.
Reserve Bank of India’s stance on interest rates and fourth-quarter earnings report will move markets in the coming days, said analysts.
“We expect the market to trade in a range of 5,600 to 6,200. A large current account deficit would act as a drag on the currency limiting RBI’s ability to reduce interest rates aggressively and this may act as a headwind for the equity markets,” said Ajay Bodke, head, investment strategy & advisory, Prabhudas Liladhar.