Sensex jumps over 1000 pts
„FPIs turn net buyers by over `500 cr
The market moved up on global and domestic cues led by latest US consumer price data hinting at easing of inflationary pressures and gains in the US market on Friday, China easing Covid restrictions in main cities of Shanghai and Beijing and early arrival of monsoon in Kerala led to broad-based buying in the market.
Sensex and Nifty-50 gained 1.9 per cent, making it third consecutive session of gains.
The Sensex closed 1041 points or 1.90 per cent up at 55925 while the Nifty-50 gained 309 points or 1.89 per cent to close at 16,661.40. The mid-cap and small-cap stocks gained more with BSE Mid-cap Index up 2.28 per cent and Small-cap up 2.23 per cent.
“Indian markets rose for the third consecutive session following positive global cues...Early arrival of monsoon in Kerala raised hopes of a favourable impact on kharif crops.
“Stocks were anyway due for a bounce after continuously underperforming since early April 2022," said Deepak Jasani, head of retail research, HDFC Securities.
The buying in the market was led by domestic institutions who were net buyers by Rs 1,524.49 crore while foreign portfolio investors also turned net buyers by Rs 502.08 crore after a long period of selling.
The rally was led by the IT sector stocks, with the BSE IT Index up by 3.75 per cent. The other sectoral gainer included Consumer Durable (4.41 per cent), Realty (3.96 per cent), Capital Goods (2.92 per cent) and Oil & Gas (2.47 per cent).
"A near-term trend reversal is visible in the domestic market, supported by valuation comfort and positive trend in the global counterparts. US stocks were boosted on
softening inflation worries which will be a crucial factor in deciding the tone of the upcoming Fed policy meeting. The easing of long-running lockdown in China also helped in lifting the sentiments across Asian markets. The market is expected to have a positive run in the near term; however, the impact of central bank policies will be a key factor to be monitored," said Vinod Nair, head of research, Geojit Financial Services.