The BSE Sensex and NSE Nifty gave a stellar performance and ended at 18-month high on Tuesday following firm global cues and sustained inflows from foreign institutional investors
The BSE Sensex and NSE Nifty gave a stellar performance and ended at 18-month high on Tuesday following firm global cues and sustained inflows from foreign institutional investors. The 30-share Sensex closed 445.91 points up at 28,978.02, while the 50-share Nifty index settled 133.35 points higher at 8,943. Among the 51-components in the Nifty index, Tata Motors gained the most — 6.86 per cent, followed by Axis Bank (up 6.12 per cent), Tata Motors DVR (up 5.64 per cent), YES Bank (up 4.30 per cent) and ICICI Bank (up 4.17 per cent). On the other hand, Coal India, TCS, Tata Power, UltraTech Cement and Wipro slipped 1.26 per cent, 1.19 per cent, 0.82 per cent, 0.38 per cent and 0.31 per cent, respectively. 15 stocks in the Nifty 50 index also hit their fresh 52-week high in Tuesday’s trade.
Domestic equity markets kicked off the day on buoyant note on reports that growth in India’s services industry accelerated to its fastest pace in more than 3-1/2 years in August, driven by a surge in domestic and foreign demand. Firm rupee against the US dollar at Interbank foreign exchange further supported market sentiments. Indian rupee hit a four-month high against the US dollar after lower-than-expected US payroll data reduced fears of a rate hike by the US Federal Reserve.
Sectorwise, the BSE Bankex, Consumer Durables, Auto and Power gained 2.96 per cent, 2.94 per cent, 2.83 per cent and 1.39 per cent. Rest all other sectoral indices on BSE also ended the day in green. The BSE Midcap and Smallcap index gained 1.84 per cent and 0.95 per cent at 13474.12 and 12764.34, respectively.
Vinod Nair, head of research, Geojit BNP Paribas Financial Services said, “Market started the week with a bullish note as weak US payroll data reduces the scope for FED rate hike in the near-term. The market is gallopping due to continued global liquidity, revival in domestic mutual fund inflows and expectation of strong earnings growth by H2FY17.”
Other Asian markets also ended higher on Tuesday as oil prices rallied and the Reserve Bank of Australia kept rates on hold, as widely expected. Shanghai Composite index and Hang Seng closed 0.61 per cent and 0.58 per cent up at 3090.71 and 23787.68, respectively. Nikkei settled 0.26 per cent up at 17,081.98.