The BSE Sensex and NSE Nifty were trading over a percentage point higher in the late afternoon trade on account of buying in frontline bluechip counters. Sensex was trading 311.03 points up at 28,170.63 (at 3.07 pm), while Nifty was trading 86.45 points up at 8678 at the same time. In the 50-share index, State Bank of India, Axis Bank, Tata Motors, Hindalco and YES Bank were up between 2.56 per cent and 7.25 per cent. On the other hand, BPCL, Idea Cellular, Bosch, Asian Paints and Cipla were trading down between 1.51 per cent and 3 per cent.
Below are five reasons why BSE Sensex surged over 300 points intraday in Friday’s trade:
1) Market mood remained upbeat after India Meteorological Department (IMD) said that monsoon rains in India were 15 per cent above average in the week ended August 10, 2016. The weather department retained its forecast for an above-average monsoon this year.
2) Buoyant global cues further supported market sentiments in today’s trade. Hang Seng, Nikkei and Shanghai closed higher by 0.83 per cent, 1.10 per cent and 1.60 per cent, respectively.
3) Market sentiments further remained upbeat on optimism ahead of IIP and inflation data scheduled to be released later in the day.
4) Better-than-expected Q1 result of State Bank of India further supported market mood on Friday. The public sector lender reported a 31.72 per cent decline in bottomline figures at Rs 2,520.96 crore for the first quarter ended June 30, 2016 against Rs 3,692.43 crore in the corresponding quarter a year ago.
5) Indian rupee was trading higher in the early trade.