5 reasons for BSE Sensex surge

Written by Express news service | Updated: Aug 20 2014, 17:17pm hrs
BSE SensexBSE Sensex on Tuesday rose for the sixth consecutive trading session to close at a new high of 26,420.7.
Continuing with its dream run, the BSE Sensex on Tuesday rose for the sixth consecutive trading session to close at a new high of 26,420.7. On aggregate, the benchmark index at the BSE has gained 1,091 points or 4.3 per cent over the last six trading sessions. The mid-cap and small-cap indices have lagged the premier index as they rose by 3.4 per cent and 3.5 per cent, respectively. Sectors such as auto, oil & gas, healthcare and banking contributed significantly to the rise as the four sectoral indices rose by over 5 per cent in the six trading sessions

Reasons for Surge

* Foreign institutional investors have pumped in a net of Rs 4,193 crore over the last six trading sessions thereby providing support to the market

* Since oil accounts for a large part of Indias import, a dip in the crude oil prices to around $101 per barrel from around $107 per barrel over the last few days lifted the sentiment and stocks of oil marketing companies

* The markets also cheered Prime Minister Narendra Modis pledge to boost infrastructure and manufacturing during his Independence Day speech

* Inflation concerns also eased as the WPI inflation declined to 5.2 % in July 2014 from 5.4 % in June 2014, mainly on account of fall in fuel and power inflation

* Rise in the global markets also provided support to the Indian bourses