Sensex, Nifty Rise Most in 2 Weeks Ahead of RBI Meet

Domestic markets today surged the most in nearly two weeks with Sensex surging 242 points and the Nifty rising 81 points led by gains in rate-sensitive shares ahead of RBI policy meet while persisting weakness in the rupee boosted IT stocks.

Easing crude oil prices on receding geo-political worries and positive European markets on reports that Portuguese central bank is set to financially rescue a crisis-hit lender, also helped Indian markets snap a two-session losing trend.

The BSE 30-share Sensex resumed strong in line with firm Asian cues and traded mostly in positive before settling at 25,723.16, a rise of 242.32 points or 0.95 per cent -- its biggest gain since July 22, 2014 (310.63 points).

The Sensex had lost 606.38 points, or 2.33 per cent in the previous two trading days i.E, August 1 and July 31.

Similarly, the 50-scrip NSE Nifty bounced back by 81.05 points, or 1.07 per cent, to end at 7,683.65. It had shed about 189 points in previous two days. Today's 81.05-point gain is also Nifty's best since July 22 (83.65 points).

Expectations that the Reserve Bank of India (RBI) in its monetary policy review tomorrow will give some relief supported the bullish market sentiment, brokers said. However, consensus is of the view that RBI will not cut rates tomorrow.

Interest-sensitive stocks such as SBI, ICICI Bank, and Axis Bank gained about 1 per cent ahead of RBI policy outcome.

Consumer durables, realty, capital goods and auto shares were in good demand.

IT shares were in the limelight after steep fall in the rupee value last week. Infosys was the top gainer from the Sensex pack today with a rise of 3.66 per cent. Wipro rose by 2.42 per cent and TCS by 0.42 per cent.

"IT, banking and auto stocks drove benchmark indices higher ahead of RBI monetary policy tomorrow. Portugal agreed to spend 4.9 billion euros to rescue Banco Espirito Santo, its largest listed bank. This provided some support to European markets," said Dipen Shah, Head of Private Client Group Research, Kotak Securities.

Meanwhile, Foreign Portfolio Investors (FPIs) sold shares worth a net Rs 1,072.96 crore last Friday as per provisional data from the stock exchanges.

Asian stocks ended mixed with upward bias in choppy trade today as investors weighed a smaller-than-forecast increase in US payrolls and the bailout of a Portuguese bank. Key indices in China, Hong Kong, South Korea and Taiwan settled with gains while from Japan and Singapore closed with losses.

European markets also were trading mixed in late morning deals. The CAC was up by 0.48 per cent, the FTSE by 0.06 per cent while the DAX was down by 0.30 per cent.

Jignesh Chaudhary, Head of Research, Veracity Broking Services said: "The past week local indices marked its first weekly loss in three weeks. Today, indices tried to recover from the fall and gained almost one per cent. It will be interesting to see the reaction of markets on RBI credit policy that is going to come out tomorrow."

Besides Infosys, other major gainers from Sensex were Hindalco 3.12 per cent, Sesa Sterlite 2.44 per cent, Maruti 2.40 per cent, BHEL 2.07 per cent, Bajaj Auto 1.72 per cent, Tata Motors 1.66 per cent and ONGC 1.62 per cent.

L&T 1.47 per cent, ITC 1.29 per cent, Tata Power 1.26 per cent, M&M 1.10 per cent and ICICI Bank 1.01 per cent, were also among those which rose.

The BSE Consumer Durables index was the biggest gainer with 3.20 per cent, followed by IT 2.08 per cent, Capital Goods 1.57 per cent, Auto 1.49 per cent, Metal 1.45 per cent, Oil&Gas 1.22 per cent, Realty 1.06 per cent and FMCG 1.33 per cent. Besides rate-sensitive sectors, gainers in BSE sectoral barometers included Teck 1.73 per cent and Power 1.73 per cent.

Market breadth turned positive as 1,810 stocks closed with gains while 1,108 ended with losses. Total turnover dropped to Rs 2,430.53 crore from Rs 3,360.96 crore last Friday.

Emerging story. Watch this space for updates as more details come in
Read More In:

Sections:
Places:
Follow us on Twitter for all updates, like us on Facebook for important and fun stuff
Translate into:
© Copyright PTI. All rights reserved. Republication or redistribution of any PTI content, including by framing or similar means, is expressly prohibited without their prior written consent.
RELATED NEWS :


Post a Comment
Share your thoughts
You are not logged in, please log in or register
Must See
Daily Mail
Digression
Order by

Order by

ABOUT US | CONTACT US | SUBSCRIBE | ADVERTISING RATES | COPYRIGHT & DISCLAIMER | COMMENTS POLICY

OUTLOOK TOPICS:    a b c d e f g h i j k l m n o p q r s t u v w x y z  0 1 2 3 4 5 6 7 8 9   
Or just type in a few initial letters of a topic: