Logging its biggest gain in over two months, the benchmark BSE Sensex today surged by 517 points to end at 27,975.86 on strong buying support, particularly in banking, telecom and IT stocks, amid positive global cues like a fall in crude prices.
The benchmark index resumed opened 200 points up and gradually moved upwards to regain 28,000-mark before closing at 27,975.86, a rise of 517.22 points or 1.88 per cent, with almost all the 30 index shares ending with gains.
The previous best one-day gain was on January 20 when the Sensex had rallied by 522.66 points.
The rally was across-the-board with 12 sectoral indices settling in the positive range of 0.47 per cent and 2.82 per cent.
Market Outlook by Vinod Nair, Head-Fundamental Research, Geojit BNP Paribas Financial Services
Reduction in crude prices and improvement in F&O liquidity, post a poor March expiry (-7% return) provided essential support to the market. The immediate factors will be role of RBI meet on 7th April and start of Q4 results. We cannot expect a immediate cut in interest rate now (Next RBI Policy meet – 7th April). But we have to look at scope to surprise the market through CRR and forward outlook. To have a rate cut over the next 1-3months will depend to the forthcoming data and US rate hike. No further negative surprise from Q4 and Post Budget reforms from the second shift of budget-session from 20th April will influence the market ahead.
Brokers attributed the the steep rise to value buying from an “over-sold” position.
“Firm global cues combined with oversold positions in index majors triggered the rebound initially, which further accelerated following noticeable buying interest,” said Jayant Manglik, President, Retail Distribution, Religare Securities.
Bharti Airtel was the top gainer with a rise of 3.55 per cent, followed by HDFC 3.52 per cent, ONGC 3.49 per cent, ITC 3.41 per cent and Coal India 3.27 per cent.
“All the sectors ended in green and the major gainers for the day were Capital goods and Realty which closed up around 2.91 per cent and 2.30 per cent, respectively,” said Head Research, Geojit BNP Paribas Financial Services.
Similarly, the 50-issue NSE Nifty also sprung back by 150.90 points or 1.81 pct to end at 8,492.30. It logged an intra-day high of 8,504.55.
As the financial year is coming to an end, markets opened for the day on a bullish note and remained strong throughout the day’s trading session. Among day’s major market moving events, surge in US technology shares overnight helped equities bounce back, said Rakesh Goyal, Senior Vice President, Bonanza Portfolio.
Market Wrap Up by Alex Mathews, Head Research, Geojit BNP Paribas Financial Services
Markets took a U- turn today, on the back of strong buying in the frontline stocks. Short sellers were forced to cover their shorts helped the markets to a certain extent. Global markets were also in the green helped the sentiments to improve. The gains were mainly seen in the auto, banks and capital goods sector.
Nifty today closed at 8492 up around 150 points. The market breadth was negative as there were seen 1050 stocks advancing against 1771 stocks declining. The Nifty volatility index, India VIX stood at 14.2625 down around 1.63%.
The Mid-cap and small-cap sectors ended up around 1.93% and 3.45% respectively.
All the sectors ended in green and the major gainers for the day were Capital goods and Realty which closed up around 2.91% and 2.30% respectively.
In the stocks’ front, the major gainers were Idea and Ultratech cement which closed up around 7.43% and 5.50% respectively whereas the losers were Tech Mahindra and Hindalco which closed down around 2.42% and 1.90% respectively.
The FIIs were sellers in the cash markets segment, sold shares worth Rs 320.52 crore on Friday, 27 March 2015. On the other hand the DIIs were net buyers on 27 March 2014, bought shares worth Rs 674.76 crore as per the provisional data from the stock exchanges.
The European markets rebounded on the comment from the Chinese central bank that government can do more to support the economic growth. The US index futures were also up.
Small-cap and mid-cap counters too attracted heavy buying interest from retail investors as their indices outperformed the Sensex.
Reduction in crude prices and improvement in F&O liquidity, post a poor March expiry (-7% return) provided essential, said Vinod Nair, Head-Fundamental Research, Geojit BNP Paribas Financial Services.
Brent crude for May eased 41 cents to USD 56.00 in Asia in the afternoon trade.
Meanwhile, Foreign Portfolio Investors (FPIs) sold shares worth Rs 320.52 crore while Domestic Institutional Investors (DIIs) bought shares worth Rs 674.76 crore last Friday, as per provisional data.
Market breadth turned positive as 2,042 counters closed in the green while 753 finished in the red and 88 held stable.
Total equity turnover dropped to Rs 2,552.45 crs from Rs 3,467.44 crs on last Friday.
Asian stocks too closed higher on hints of more monetary easing from China. The European markets also rebounded on comment from the Chinese central bank that government can do more to support the economic growth.
European stocks too were trading higher in their late morning deals after China’s policy makers signalled last weekend that the country has room to ease monetary policy to boost sluggish growth. The CAC was up by 0.2 pct, the DAX by 1.39 pct and the FTSE by 0.51 pct.
Vineeta Mahnot, Equity Research Analyst, Hem Securities
Markets staged a spectacular trading session today with smart gains. Sensex climbed 517 points or 1.88% to shut the day at 27975 lead by Bharti Airtel, HDFC twins, ONGC, ITC, Coal India, Axis Bank, L&T and BHEL. Reliance Industries, Hindalco Industries and Tata Power remained under pressure. All the sectoral indices ended in green with capital goods, FMCG, Real Estate and Banking and financials leading the pack. Sharp fall in crude oil prices also weighed on the sentiment. The broader indices outperformed benchmarks; the BSE Midcap and Smallcap indices jumping 1.93 percent and 3.4 percent, respectively. Market breadth was positive with 1743 advances against 672 declines on the BSE while 77 stocks were unchanged.