BSE Sensex index rose more than 1 pct, marking its highest close in over two weeks as lenders surged on hopes that inflation and factory data is favourable.
The benchmark BSE Sensex jumped by 402 points today to close at over two-week high of 27,507.30, led by gains in banking and auto stocks, on hopes of RBI rate cut ahead of inflation and IIP data release.
The broader 50-issue NSE Nifty too regained the crucial 8,300-level.
Government’s move to mollify overseas investor’s’ taxation worries and firming trend in overseas markets supported investor sentiment, traders said.
The BSE 30-share Sensex resumed on a positive note and touched an intra-day high of 27,544.24 before settling 401.91 points or 1.48 per cent higher at 27,507.30.
Of the 30 Sensex stocks, 26 ended with gains.
The index had gained 506.28 points on Friday after Finance Minister Arun Jaitley refereed the MAT issue to a high-level committee.
Similarly, the broader 50-issue NSE Nifty regained the 8,300-mark to hit session’s high of 8,332.75 and concluded 133.75 points or 1.63 per cent higher at 8,325.25.
On macroeconomic front, data on inflation based on consumer price index (CPI) for April and industrial production (IIP) data for March will be released tomorrow.
“Markets bounced back strongly largely on the back of positive domestic as well as global cues,” said Manoj Choraria, a Delhi-based NSE stock broker.
On Sensex, State Bank of India was the biggest gainer with a rise of 5.44 per cent, followed by Vedanta 5.34 per cent, Hero MotoCorp 3.59 per cent and HDFC 3.16 per cent.
Auto stocks rose after a data showed car sales grew 18.14 per cent to 1,59548 units in April.
Among the BSE sectoral index, metal rose the most by surging 2.65 per cent, followed by auto 2.52 per cent, metal 2.52 per cent, bankex 2.40 per cent, consumer durables 2.27 per cent, healthcare 1.69 per cent, power 1.56 per cent, IT 1.34 per cent and oil&gas 1.25 per cent.
In line with overall bullish trend, midcap index rose 2.13 per cent, while smallcap gained 1.28 per cent.
Market Outlook by Vinod Nair, Head-Fundamental Research, Geojit BNP Paribas Financial Services
Post the correction during the last 2months, India’s valuation has corrected from 19.5x to 15.5x at CY15 earnings. Based on historical valuation it provides discount comparing to immediate EMs peers. In the near-term risk are understanding the extend of further earnings downgrade and outcome of parliament session. But even though India’s economy will be better in the medium-term led by real incomes and higher government spending. Hence the big question is timing which is always never know, thus we recommend to construct positively, suggest sectors like PSUB, IT will higher mix.
Market Wrap Up by Alex Mathews, Head Research, Geojit BNP Paribas Financial Services
Nifty finally moved and closed above its 200 day moving average at 8276 on back of strong buying in Banking and Metal sectors. Public Sector Banking stocks were in good demand in today’s trading; metal stocks were also trading higher on Chinese rate cut. Nifty is likely to consolidate at around 8250-8350 levels in the days to come.
Nifty closed at 8325 up around 133 points. The market breadth stood positive as there were seen 1743 stocks advancing against 984 stocks declining. The Nifty volatility index, India VIX stood at 18.6250 down around 2.53%.
The mid-cap and small – cap sectors indices closed up around 2.13% and 1.28% respectively.
Metal stocks were in focus after the news of Chinese interest rate cut.
Barring the FMCG which ended down around 0.32%, all other sectors ended in green. The major gainers for the day were Auto and Metal which closed up around 2.52% each.
In the stocks’ front, the major gainers were Bank of Baroda and Vedanta which closed up around 16.82% and 5.23% respectively whereas the selling was seen in HUL and ITC closed up around 3.55% and 0.61% respectively.
The FIIs were sellers in the cash market segment on 08 May 2015, Friday, sold shares worth Rs 437.56 crore. The DIIs on the other hand they were buyers on 08 May, bought shares worth Rs 1114.38 crore in the capital markets segment.
European markets were little changed and the US index futures were also trading flat.
Tomorrow companies like Care rating, Motherson Sumi, TBZ, TV Today, Sobha, NilKamal, Central Bank, Finolex cables, Dr Reddy, Torrent Power, Central Bank, Vijaya Bank, Jubilant, Apollo Tyre and Ashok Leyland may announce their earnings.