The 30-share Sensex of the Bombay Stock Exchange (BSE) closed 317.38 points or 3.19% higher at 10,275.60 points. Deven Choksey, managing director of KR Choksey Securities said, Apart from the stimulus package, I think that markets have seen this steep increase only due to the inflows from the FIIs in the domestic markets. The announcement of stimulus package has signaled currency appreciation, which might further allow FII money to enter in the Indian markets once again. FIIs were net buyers for the second consecutive trading day. They were net purchasers to the effect of Rs 114 crore on Monday. On Friday, central bank had cut the cash reserve ratio (CRR) by 50 basis points and both the Repo and Reverse Repo rates by 100 basis points, respectively.
The broader S&P CNX Nifty of the National Stock Exchange (NSE) added 74.70 points or 2.45% to end the day at 3,121.45 points. Domestic markets started the day on positive gap and continued to rally upward and finally ended with huge gains. Firm cues from the Asian and European markets also added gains on the domestic bourses.
Though the quarter results season starts soon, I dont think it will have much impact on Indian markets as most of the things are known to us. Disappointment will certainly be there in the results, but we will also witness new buying in the markets again, added Choksey.
Barring Realty and FMCG all the sectors in the BSE Sectoral indices ended the day on positive terrain, with Metal, Oil & Gas and Bankex being top performers.
The market breadth was positive as out of 2,613 stocks traded on BSE, 1,680 stocks closed in green while 859 stocks closed in red and 74 stocks remained unchanged. Among the Sensex, 23 stocks advanced and 7 stocks declined.
Dealers say that, for the next few days there are strong chances that the benchmark indices will continue their positive rally in the markets.