Sensex rises 260 points to reclaim 38,000-mark
BULL RUN The index climbs to six-month high on rally in bank stocks, positive global cues
MUMBAI: Extending its winning run to the fifth session, BSE benchmark Sensex climbed 269 points to hit six-month high of 38,024 led by rally in banking stocks amid soaring foreign fund inflows, strengthening rupee and positive global cues.
After rallying nearly 500 points in afternoon trade, the Sensex settled 269.43 points, or 0.71%, higher at 38,024.32.
The NSE Nifty closed 83.60 points, or 0.74%, up at 11,426.85.
The 30-share index breached the 38,000-mark for the first time in six months.
It had ended at 38,090.64 on September 14, 2018.
Broader indices, however, ended on a mixed note, with BSE Midcap ending 0.55% higher and BSE Smallcap slipping 0.34%.
Kotak Mahindra Bank was the top gainer in the Sensex pack, ending 4.31% higher.
Powergrid, Tata Consultancy Services, ICICI Bank, State Bank of India, HCL Technology, NTPC, Infosys, Bajaj Finance, HDFC duo, ONGC, Vedanta and Indusind Bank too rose up to 2.84%.
On the other hand, Hindustan Unilever, Yes Bank, ITC, Bharti Airtel, Reliance Industries, Sun Pharmaceuticals and Axis Bank fell up to 2.16%.
Sectorally, the BSE power, bankex, teck, oil and gas, IT and finance indices gained the most, rising up to 1.94%; while BSE telecom, FMCG and energy indices fell up to 1.79%.
“Benchmark indices outperformed with IT index leading from the front amid positive global cues, Brexit and trade deal deadline has been extended. Besides, public sector banks are
RISING FOR THE FIFTH STRAIGHT SESSION, THE RUPEE ON FRIDAY JUMPED 24 PAISE TO CLOSE AT 69.10 AGAINST THE US DOLLAR
moving out of prompt corrective action framework and global liquidity is increasing supported by dovish Federal Open Market Committee which is positive for India. Strengthening rupee and drop in yield is positive for rate sensitive stocks,” Vinod Nair, head of research, Geojit Financial Services, said.
During the week, Sensex surged 1352.89 points, or 3.68%; while Nifty climbed 391.89 points or, 3.54%.
The BSE-30 index gained by around 3.5% in the past week. Rally in the Indian markets was led by strong foreign institutional investors (FII), buying on account of reduction in geopolitical risks and opinion polls suggesting a likely return of the National Democratic Alliance government in the upcoming general elections, said Sanjeev Zarbade, vice-president, PCG Research, Kotak Securities.
On a net basis, FIIS bought shares worth a net of ₹1,482.99 crore on Thursday, while domestic institutional investors (DIIS) were net sellers to the tune of ₹817.77 crore, provisional data available with the BSE showed.
“The flows from overseas from the FIIS have helped the markets, and a stable to stronger Rupee has been facilitated by likely year end repatriations too,” said Joseph Thomas, head research, Emkay Wealth Management.
Rising for the fifth straight session, the rupee on Friday jumped 24 paise to close at 69.10 against the US dollar on sustained foreign fund inflows and heavy buying in domestic equities.
Forex traders said the dollar’s weakness against its key rivals overseas and easing crude prices strengthened the market sentiment domestically.
At the Interbank Foreign Exchange, the domestic unit opened at 69.28 and advanced to a high of 69.03 during the day. It finally settled at 69.10, a rise of 24 paise against the dollar over its previous close.
The rupee on Thursday had strengthened by 20 paise to close at 69.34 against the US dollar.
On a weekly basis, the domestic currency has added 104 paise. This is also the fifth consecutive week of gain for the local unit.