Iran nuclear deal sets Street on fire, BSE Sensex surges 575 points

Nov 30 2013, 16:32 IST
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Shares of capital goods, banking, auto sectors firmed up sharply on robust buying support. (AP) Shares of capital goods, banking, auto sectors firmed up sharply on robust buying support. (AP)
SummaryShares of capital goods, banking, auto sectors firmed up sharply on robust buying support.

Markets snapped three-week losing streak and surged 575 points on renewed buying by operators and investors as crude oil prices fell after Iran agreed to curb its nuclear programme under an interim but key deal with major world powers to get limited relief from sanctions.

The government released GDP growth data for the July-September quarter after trading hours on Friday and hence its impact was not felt in the stock market.

The market was volatile during the week as traders rolled over positions in the futures and options segment from the near month November series to December. The November contract expired on November 28.

Shares of capital goods, banking, auto, power, PSU, realty, metal and FMCG sectors firmed up sharply on robust buying support.

The BSE Sensex opened higher at 20,326.66 and shot up further to 20,819.77 before concluding at over one-week high of 20,791.93, posting a sharp gain of 574.54 points, or 2.84 per cent, over last weekend close.

The 30-share BSE benchmark index had lost 979.42 points, or 4.62 per cent, in the last three weeks.

The NSE Nifty also rose by 180.65 points, or 3.01 per cent, to 6,176.10. The key index had lost 311.75 points, or 4.94 per cent, in the last three weeks.

Benchmark WTI and Brent crude oil prices fell after Iran agreed to limit its controversial atomic programme to get some relief from Western sanctions, raising the possibility that curbs on its oil exports would soon be lifted.

"Indian equity markets had a mixed trading session during the week before ending on a positive note after November F&O contract expiry on Thursday," Jignesh Chaudhary, Head (Marketing), Veracity Broking Services said.

"Markets started trading on a positive note buoyed by the positive news on Iran, which cooled down crude prices a bit leading to a cheer from market participants. Markets did see some correction in the mid-week owing to profit booking and looming expiry."

"The CNX Nifty is expected to trade in 6,150-6,265 range and Sensex in 20,500-21,520 range next week," he added.

Persistent capital inflows from foreign funds also boosted the market sentiment. Foreign Institutional Investors (FIIs) bought shares worth Rs 1,317.16 crore during the week under review, including the provisional figure of November 29, as per the data issued by the exchanges.

As many as 26 out of the 30 Sensex scrips ended in the green, while the rest logged losses, reflecting a broad-based buying.

Major gainers from the

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