1. 5 reasons why Sensex surged over 350 points today; Midcap index hits new high

5 reasons why Sensex surged over 350 points today; Midcap index hits new high

Sentiments remained upbeat since morning after India’s core sector output rose to 3.2 per cent in August

By: | New Delhi | Updated: October 3, 2016 3:39 PM
BSE Sensex, NSE Nifty, stock markets today Key benchmark indices BSE Sensex surged over 400 points intraday and NSE Nifty crossed the psychological level of 8,700 on Monday.

Key benchmark indices BSE Sensex surged over 400 points intraday and NSE Nifty crossed the psychological level of 8,700 on Monday. The BSE Midcap index also touched its new all-time high during the day. According to market experts, firm Asian cues, coupled with optimism ahead of the RBI policy review on Tuesday made investors more nimble. Later, the 30-share index closed 377 points up at 28243, while Nifty settled 126.95 points up at 8,738.10.

Below are 5 reasons why domestic equity markets were upbeat in Monday’s trade:

1) Sentiments remained upbeat since morning after India’s core sector output rose to 3.2 per cent in August on the back of sharp rise in steel production and a pickup in cement, suggesting a lift in infrastructure and construction activity.

2) Appreciation in Indian rupee too supported the sentiments. At 2.55 pm, the currency was trading nearly 14 paise up at 66.48.

3) Asian peers ended in green after Deutsche Bank seemed to catch a break from the US Department of Justice. Hang Seng, Nikkei and Shanghai settled higher by 1.23 per cent, 0.90 per cent and 0.21 per cent, respectively.

4) According to Morgan Stanley Investment Management, India’s current account and trade deficits have witnessed improvement from the peak level in the quarter ended December 2012. India’s current account deficit (CAD) narrowed to 0.1 per cent of GDP for the June quarter this year, from the peak of 6.8 per cent of GDP in the quarter ended December 2012.

5) Sustained inflows by foreign institutional investors (FIIs) further supported market sentiments. FIIs have poured more than Rs 20,000 crore into the capital market in September, making it the highest net inflow in 11 months.

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