Rising for the seventh straight session, the benchmark BSE Sensex on Monday surged by 414 points to 27,730.21 on rally in realty and banks shares as above normal monsoon reignited hopes of an RBI rate-cut.
In last seven sessions, the index has gained 1,359.23 points, its longest winning run since February.
The sentiment was also boosted by firm global cues after Greece gave its creditors new proposals on reforming bailout, fuelling hopes of averting a default and possible exit from the euro zone.
“A better-than-forecasted monsoon has reignited the optimism amongst market participants that a rate-cut by the RBI may be a possibility, if the monsoon trend sustains,” said Hitesh Agrawal, Head Research of Reliance Securities.
The 30-share BSE index resumed higher and remained in the positive terrain throughout the day. It hit an intra-day high of 27,782.31 before ending at 27,730.21, a steep rise of 414.04 points or 1.52 per cent — its biggest single day gain since May 8 when it surged by 506.28.
The broader 50-issue NSE Nifty reclaimed 8,300-mark to hit a intra-day peak at 8,369.45 and settled at 8,353.10, showing a significant rise of 128.15 points or 1.56 per cent.
Of the 30 Sensex stocks, 25 ended with gains.
Top gainers among Sensex included Axis Bank, which surged 3.62 per cent and ICICI Bank zoomed 3.46 per cent.
Among sectoral indices, realty rose the most by surging 5.05 per cent, followed by bankex 2.62 per cent, consumer durables 2.42 per cent, IT 1.86 per cent, power 1.67 per cent, FMCG 1.39 per cent, metal 1.13 per cent and auto 1 per cent.
Mid-cap index rose 1.49 per cent and small-cap gained 1.40 per cent.
Meanwhile, foreign investors sold shares worth Rs 106.12 crore during Friday’s trading.
Globally, Asian bourses ended higher, while European markets were in green zone in opening trade.
Market Outlook by Mr. Vinod Nair, Head-Fundamental Research, Geojit BNP Paribas Financial Services Ltd
Especially rate sensitive stocks like finance, auto and industries were up on Monday expecting further ease in interest rate. Earlier, RBI had highlighted the risk from below normal monsoon, food inflation, increase in crude prices and external environment. Hence after the last month’s cut of 25bps, it had diminished the likelihood to have further cut. But it’s a surprise that in a short time, we have seen better than expected development with regards to monsoon, good number for May CPI number, increase in MSP and relief to global risk are good developments to have further cut.
Market Wrap Up by Mr. Alex Mathews, Head Research, Geojit BNP Paribas Financial Services Ltd
Tracking the positive news from the global front market opened with a positive note and moved up further in the second half on hopes that Greece was closer to reaching a deal to avert default. Greek shares rose more than 8% during the day influenced world equity markets sentiments. The European markets rose after the Greek Prime Minister presented a new plan of reforms. According to sources, the ECB raised an emergency fund for Greece lenders for a third time in less than a week.
Beaten down sectors like Banking and reality were in good demand which caused minor short covering ahead of futures and options June expiry.
Nifty today opened at 8259 made an intraday high and low of 8369 and 8257 respectively and finally closed at 8353 up around 128 points. The market breadth was positive as there were seen 1724 stocks advancing against 981 stocks declining. The Nifty volatility index, India VIX stood at 15.4875 up around 2.66%.
The mid-cap and small cap index closed up around 1.49% and 1.40% respectively.
All the sectors ended in green and the main gainers were Realty and Banking which closed up around 5.05% and 2.62% respectively.
In the stocks’ front, the major gainers were PNB and Axis Bank which closed up around 6.05% and 3.89% respectively whereas the selling was seen in Bharti Airtel and Lupin, which closed down around 2.34% and 0.65% respectively.
The FIIs were sellers in the cash market segment on 19 June 2015, Friday, sold shares worth Rs 106.12 crore. The DIIs on the other hand were buyers on 19 June, bought shares worth Rs 447.55 crore in the capital markets segment.
The US index futures were also trading higher.
With PTI inputs