Buying in the last leg of trade mainly drove the BSE Sensex and NSE Nifty higher on Monday. Sensex closed 348.32 points up at 25,022.16, while Nifty 50 index settled 116.20 points up at 7,671.40.
Here are 5 reasons which supported market sentiments today:
1) Monsoon: After two years of deficient rainfall, government on Monday said monsoon this year is expected to be normal and directed states to chalk out plans to boost crop acreage and production in kharif season starting June.
2) Traders got some support with Economic Affairs Secretary Shaktikanta Das’ statement that a Parliamentary panel is expected to submit its report on the Bankruptcy and Insolvency Code on April 29 and government would push for the passage of the bill in the second leg of the Budget session.
3) Sentiments also got some support with Naushad Forbes, the new President of the Confederation of Indian Industry (CII), stating that Indian industry is ready to grant greater market access to European Union firms in areas such as automobiles, wines and spirits in return for gains in garments, automobiles, automobile components and services sector in a bid to end a deadlock on the proposed EU Free Trade Agreement.
4) Global cues: European markets were trading in green reversing initial losses helped by gains in Italian banks and mining stocks. The Italian banking sector index rose sharply for a second straight session on hopes the Italian government will soon thrash out a plan to set up a state-backed fund to buy bad loans and plug capital shortfalls. Asian markets exhibited mixed trend on Monday with mainland Chinese shares posting strong gains on signs of easing deflationary pressures in the world’s second-largest economy, while Japanese shares fell in thin trade as the dollar fell back to below 108 yen and data showed Japan’s core machinery orders fell 9.2 percent in February from the previous month.
5) Rupee: Appreciation in Indian rupee also supported sentiments. The rupee was trading strong at 66.40 at the time of equity markets closing as compared to a previous close of 66.47 on increased dollar selling by banks.