Sensex jumps 240 pts; reclaims 28,000-mark after ten weeks

Reclaiming the 28,000-mark after 2-1/2 months today, the benchmark BSE Sensex surged by 240 points on across-the-board buying after the government promised capital support to PSU banks, while improved macroeconomic data also boosted market sentiment.

Moreover, a firming trend in global markets, after Greek PM Alexis Tsipras was reportedly prepared to accept creditors’ demands for a bailout buoyed sentiments, equity brokers said.

“It seems that the confidence in Indian markets has improved and its outperformance continues to be strong. Today with the news that Greece will accept the bailout, India rallied ahead…,” said Vinod Nair, Head of Fundamental Research, Geojit BNP Paribas Financial.

Market Outlook by Vinod Nair, Head-Fundamental Research, Geojit BNP Paribas Financial Services
It seems that the confidence in Indian markets has improved and its outperformance continues to be strong. Today with the news that Greece will accept the bailout, India rallied ahead with its outperformance. This is providing strength to the India growth story. Led by good monsoon till date, inline CPI trajectory, possibility of further interest rate cut and the recent good numbers from the core sectors are healthy signs for India.

Shares of capital goods, banking, power, realty, auto, IT and teck sectors firmed up on good buying enquiries.

The 30-share index, which had gained 135 points in the previous session, recaptured the 28,000-mark by jumping 240.04 points or 0.86 per cent to close at 28,020.87. Intra-day, it hit the session’s high of 28,099.25 and a low of 27,799.91.

Sensex had last ended at 28,442.10 on April 17.

The 50-share NSE Nifty also regained the 8,400-mark by climbing 84.55 points or 1.01 per cent to 8,453.05.

The index had ended at nearly 2-1/2 months high at 8,453.05, disclosing a gain of 84.35 points or 1.01 per cent.

Market Wrap Up by Alex Mathews, Head Research, Geojit BNP Paribas Financial Services
Domestic market opened with a marginal uptick and later it moved up sharply ahead of the Greece referendum. Global markets were also moved up due to oversold situation.  Volatility is likely to increase in the days to come, if Greece failed to make debt repayment.
Nifty closed at 8453 up around 84 points. The market breadth was positive as there were seen 1877 stocks advancing against 901 stocks declining. The Nifty volatility index, India VIX stood at 15.8450 down around 6.39%.  The mid-cap and small-cap sector closed up around 1.39% and 1.40% respectively.
Barring the FMCG sector, which closed down around 0.33% all other sectors ended in green. The major gainers in the sectorial front were Capital goods and Power which closed up around 1.71% and 1.68% respectively.
In the stocks’ front, the major gainers were Bank of Baroda and BHEL which closed up around 4.23% and 4.07% respectively whereas the selling was seen in ZEEL and Lupin, which closed down around 0.92% and 0.48% respectively.
The FIIs were net sellers in the cash market segment on 30 June 2015, Thursday, sold shares worth Rs 551.38 crore. The DIIs on the other hand were buyers on 30 June, bought shares worth Rs 580.59 crore in the capital markets segment.
The European markets were also up as Greece said it was prepared to accept the creditors’ bailout proposals with some changes. The US index futures were also up.

Sentiment got a lift after output of eight infrastructure sectors expanded 4.4 per cent in May, the highest growth rate in the past six months, they said.

Global cues were also positive on signs that Greece was ready to accept creditors’ proposals to end a standoff over a bailout, influenced sentiment.

Banking stocks gained after government said it is examining the funds requirement of public sector banks over three years and promised required capital support as part of a comprehensive package to strengthen them.

Market View by Anand James, Co Head Technical Research Desk, Geojit BNP Paribas
If bargain hunting formed a base for the last couple of days’ recovery, positive vibes from capex as well as core sector output data gave momentum for markets to push higher. But of course, it is very likely that investors have already started pricing in good Q1 numbers scheduled for release later in the month. And this is probably the reason why markets have been able to ignore the pain from the Grexit uncertainty, and allowed investors to weigh the domestic factors during the sell off early in the week.

State-run SBI surged 1.83 per cent, while private lenders such as ICICI Bank gained 1.35 per cent, Axis Bank jumped 3.60 per cent on BSE. Globally, Asian and European stocks edged higher as investors appeared to take developments in the Greek debt crisis in stride.

Key indices in Germany, France and the UK were up 1.76 per cent to 3.15 per cent.

Pramit Brahmbhatt, Veracity Group CEO said: “Local indices continued to trade higher on the investors’ confidence and again closed on a positive note. Though the overall sentiment remained weak in the market because of continued concern about the Greek default.”

Market View by Gaurav Jain, Director, Hem Securities
Markets continue to add gains on second straight day as Greece Prime Minister is likely to accept most bailout conditions. Further the strengthening of rupee and improved macro-economic data released yesterday on eight core sector growth improved the sentiments.

Key equity benchmark indices from Asia, including Japan, South Korea, Singapore and Taiwan were up 0.14 per cent to 1.14 per cent, while China’s index fell by 5.23 per cent. The Hong Kong’s stock market was closed today.

Out of 30-share Sensex pack, 23 ended higher.

Major gainers were BHEL (3.67 pc), Axis Bank (3.60 pc), Cipla (2.75 pc), Tata Motors (2.36 pc), SBI (1.83 pc), TCS (1.54 pc), L&T (1.52 pc), Wipro (1.51 pc), ICICI bank (1.35 pc), ONGC (1.31 pc), Infosys (1.25 pc), Vedanta (1.15 pc) and Bharti Airtel (1.10 pc).

Among the BSE sectoral indices, capital goods rose 1.69 per cent, power 1.64 per cent, bankex 1.63 per cent, IT 1.48 per cent, realty 1.48 per cent, auto 1.33 per cent and teck 1.27 per cent.

Small-cap and mid-cap indices also rose by 1.45 per cent and 1.30 per cent, respectively.

The market breadth remained positive as 1,889 stocks ended in green, 877 closed in red and 116 ruled steady.

Total turnover rose further to Rs 3,226.25 crore from Rs 2,719.86 crore yesterday.