Sensex closes higher on the back of positive US data

Written by fe Bureau | Mumbai | Updated: Feb 22 2014, 03:56am hrs
Benchmark indices ended higher higher on Friday spurred by a survey that showed that the US factory activity growth hit nearly 4-year high in February. The BSE Sensex ended 164.11 points or 0.80% higher at 20,700.75 points, while the NSE Nifty ended 64 points or 1.05% higher at 6,155.45 points.

As per financial data firm Markit its "flash" or preliminary US Manufacturing Purchasing Managers Index rose to 56.7 in February, its highest level since May 2010.

Most Asian indices ended. The Nikkei (2.88%), KOSPI (1.41%), Straits Times (0.43%) and Taiwan Taiex (0.91%) ended higher.

Back home, among individual stocks, Axis Bank (2.85%), Larsen & Toubro Ltd (1.89%) and ITC Ltd (1.83%) were among the major gainers on the 30-share Sensex. Among sectoral indices, the BSE Bankex (1.16%), BSE Metal (0.85%) and BSE Capital Goods (1.24%) were the major gainers.

Experts feel the global sell-off seen in emerging markets could be abating. "My thinking is that people are already beginning to realise that maybe they moved too fast, said Mark Mobius, executive chairman, Templeton Emerging Markets Fund in a media interaction. Were nearing the bottom of this exodus.

However, experts feel the disappointing Chinese data could dent the market sentiment. "Weak Chinese manufacturing data could restrict the gains. The near-term positive momentum is likely to continue as long as Nifty holds 6080 support level," Standard Chartered analysts said in a report. The flash Markit/HSBC Purchasing Managers' Index (PMI) for China fell to a seven-month low of 48.3 in February.