Sensex soars nearly 400 points in pre-election rally
POSITIVE CUES Investors widen portfolios amid hopes of a win for NDA govt
MUMBAI: The Sensex soared 383 points to reclaim the 37,000 mark on Monday, led by gains in Reliance Industries Ltd (RIL), ICICI Bank and Bharti Airtel amid sustained foreign fund inflow and positive global cues.
According to experts, investors widened their portfolios amid hopes of a win for the incumbent National Democratic Alliance (NDA) government, following the announcement of 2019 general election dates on Sunday.
The 30-share Sensex started off on a st rong f ooting and reclaimed the 37,000-mark on widespread buying by investors, and ended at 37,054.10, up by 382.67 points, or 1.04%.
This is the highest closing level since September 19 last year when i t had cl osed at 37,121.22 points.
The gauge had settled 53.99 poi nt s , o r 0 . 1 5 %, l o wer a t 36,671.43 on Friday.
The National Stock Exchange (NSE) Nifty, after climbing to 11,172.40 points—its highest since September 26 last year— closed at 11,168.05 points, up 132.65 points, or 1.20%.
Power, oi l and gas, PSU, metal, banking, auto, capital goods, i nfrastructure and healthcare sector stocks witnessed heavy buying through the session.
Experts see this as a pre-poll rally following the announcement of 2019 general election dates.
Prevailing geopolitical concerns in the wake of recent India- Pakistan military conflicts will be a key factor in the upcoming general elections that may help incumbent NDA government at the centre, they said.
Lok Sabha elections will begin on April 11 and will be held over seven phases followed by counting of votes on May 23, the Election Commission announced on Sunday.
The rupee advanced by 25 paise to close at 69.89 against the US dollar in line with a strong rally i n domestic equities, reflecting positive investor sentiments amid hopes that the incumbent NDA government will get the second term.
Besides, sustained foreign fund inflows also helped the rupee trade higher. At the interbank foreign exchange, the Indian unit opened on a positive note at 69.99 against the dollar and hit a high of 69.8250 and low of 70.03.
It finally settled the day at 69.89, showing 25 paise gains. The Financial Benchmark India Private Ltd (FBIL) set the reference rate for the rupee against the dollar at 69.9308 and against euro at 78.5710. The reference rate for the rupee against the British pound was f i xed at 90.7916 and against 100 Japanese yen at 62.93.
In the previous session on Friday, the rupee was down 14 paise to close at 70.14.
On a weekly basis, however, the domestic currency clocked 78 paise gains.
Meanwhile, on a net basis, foreign institutional investors (FIIS) bought shares worth ₹1,095.06 crore, while domestic institutional investors (DIIS) sold shares worth ₹470.7 crore on Friday, provisional data showed.
A firming trend in the rest of Asia, as Chinese markets rebounded on hopes of more policy support for the slowing economy, and a higher opening in European shares also accelerated buying activity here, traders said.
Shanghai Composite Index rallied 1.92%, Japan’s Nikkei gained 0.47%, Hong Kong’s Hang Seng was up 0.99% and Korea’s Kospi rose 0.03%.
Among European markets, Frankfurt’s DAX rose 0.38%, Paris CAC 40 advanced 0.32% in their early deals, and London’s FTSE too gained 0.77%.