The country’s equity indices, despite volatility during the first hours of the trading session, managed to close the day with huge gains. Strong cues from the Asian and European markets coupled with positive corporate results and encouraging economic data from across the globe, boosted the sentiments of the domestic markets.
The 30-share Sensex of the Bombay Stock Exchange (BSE) added 253.92 points, or 1.62%, to close the day at 15,924.23 points. The broader S&P CNX Nifty of the National Stock Exchange (NSE) gained 74.95 points, or 1.62%, to end the day at 4,711.40 points.
Dealers in the markets said during the final hours of the trading, some amount of short covering was seen. Deven Choksey, MD of KR Choksey securities said, “The overall environment of the market is encouraging, apart from that, Monday’s rise was mainly due to surge in the stocks prices of Reliance Industries. In the coming days, there are chances that markets might continue its winning rally, as there are no major negative cues to impact the markets.”
The domestic markets opened the day on positive terrain and soon turned volatile on profit-booking during the mid-trading session. However, during the final hours of the trading, buying was witnessed and benchmark indices ended with highest gains in 14 months. Barring FMCG and consumer durable (CD), all the sectors in the BSE Sectoral indices closed in green, with auto and realty sectors being the top-performers. “We are witnessing fresh inflows in the markets, there are chances that Nifty might remain at the 4,750-4,825 mark. However, at the higher level there are chances of some profit-booking in the markets,” added Choksey.
The breadth of the market remained positive, as out of 2,785 stocks traded on the BSE, 1,761 stocks advanced, 953 stocks declined, while 71 stocks remained unchanged. In the Sensex pack, 26 stocks closed in green while four ended in red. “Despite markets going in the northward direction, monsoon still remains as the critical factor. In the coming days, if there is no sufficient rainfall then there might be some trouble for the financial industry in the next financial year,” said an analyst from the leading broking house.
