The BSE Sensex recovered over 505 points intra-day from a low of 25,549.05 to a high of 26,055 in Tuesday’s trade on account of buying in blue chip counters. The 30-share index settled 328.37 points up at 26,007.30. The NSE Nifty index closed 107.60 points up at 7962.65.
Below are 5 factors which supported market sentiments in today’s trade:
1) Global cues remained supportive with European counters making a firm start. CAC, DAX and FTSE were trading with a gain of around half a percent in early deals after some encouraging company results, with pulp and paper maker UPM climbing after better-than-expected quarterly profits while BP also rose. However, Asian markets ended mixed ahead of central bank policy meetings in the United States and Japan this week.
2) Sentiments remained optimistic with Economic Affairs Secretary Shaktikanta Das, pledging a strong focus on the execution of Budget announcements and ensuring that there are no delays in investments by key ministries. He said India plans to further liberalise rules for overseas investors as the government looks to reduce the need for approvals.
3) Traders also took some encouragement with report of Department of Industrial Policy and Promotion (DIPP) that Foreign Direct Investment (FDI) into India touched the highest ever mark of $51 billion during the April-February period of last fiscal which ended March 31. Some support also came with report showing that India might surpass China in attracting FDI this year, in terms of percentage of its GDP, as the gap in inflows between the two has been narrowing on the back of ongoing reforms in the country.
4) Corporate results of Maruti Suzuki which beat analysts expectations on margins and revenue front further supported markets. Maruti reported its highest-ever annual profit of Rs 4,571 crore for the year ended March 31, up almost 25 percent.
5) Appreciation in Indian rupee too aided sentiments. The rupee appreciated by 9 paise to 66.51 against the US dollar at the time of equity markets closing on increased selling of the American currency by exporters and banks.