Buoyed by a slew of Cabinet decisions, benchmark indices made good use of positive start today as the Sensex moved up 198 points and the Nifty took control of 9,550 again ahead of the June derivative expiry. Yesterday, the government gave in-principle approval to disinvestment of beleaguered Air India, which has floundered amid stiff competition from no-frills rivals. Also, in a move that will spell bonanza to 48 lakh central government employees, the Union Cabinet approved recommendations of 7th Central Pay Commission.
Also, in a move that will spell bonanza to 48 lakh central government employees, the Union Cabinet approved recommendations of 7th Central Pay Commission. Speculators went about covering their short positions in anticipation of more reforms. Today is the expiry of June futures and options derivative contracts.
The Sensex resumed higher and hit 31,031.97 at 1126 hours, up 197.65 points, or 0.64 per cent, at 1126 hours. The NSE 50-share Nifty advanced 63.35 points, or 0.67 per cent, to 9,554.60 at 1126 hours. Telecom, metal, technology and IT stocks hit a sweet spot, with global cues too going strong.
The bright spots were Axis Bank (up 3.34 per cent), Infosys (2.01 per cent), Tata Steel (1.91 per cent) and Bharti Airtel (1.35 per cent). Foreign portfolio investors (FPIs) sold shares worth a net Rs 469.09 crore yesterday, as per provisional data. Domestic institutional investors (DIIs) picked up shares worth a net Rs 168.97 crore yesterday.
Asian stocks edged higher, taking cues from a stronger finish in the US, with traders expected to digest comments from top central bankers overnight. US equities registered strong gains yesterday, as bank stocks led the charge. The S&P 500 index notched up its biggest one-day gain since late April.