Sensex hits 8-month high on monsoon fillip

Mumbai: Stocks on the domestic bourses ruled higher for the sixth session as the market benchmark Sensex added nearly 134 points to end at 27,279. Sensex on Monday closed at a fresh over 8-month high.

The positive monsoon and the global recovery post-Brexit spread cheer pushed the benchmark indices upward. The markets turned bullish as rainfall deficit shrank to six per cent, sharply down from 18 per cent in the first week of June. The rupee firmed up against the US dollar, which also came as a positive trigger.

The positive monsoon and the global recovery post-Brexit spread cheer pushed the benchmark indices upward. The markets turned bullish as rainfall deficit shrank to six per cent, sharply down from 18 per cent in the first week of June. Several states received substantial rains over the weekend.

Mood was also decidedly upbeat after it emerged that central bankers across the globe are stepping up stimulus measures to offset concerns from the shock Brexit referendum, which sent global stocks higher. Market remained in the green territory throughout.

The 30-share Sensex ended higher by 133.85 points or 0.49 per cent at 27,278.76, its highest closing since October 26, 2015. As many as 19 stocks gained. It had added 747.20 points in the past five sessions. The NSE Nifty ended up 42.35 points or 0.51 per cent at 8,370.70, its highest level since August 20, 2015.

Widespread gains built up mood, with realty, PSU, metal, oil & gas and capital goods stocks emerging as heavy-hitters. Investors went for the kill buoyed by optimism over increased chances of GST becoming a reality with changed equations in the Rajya Sabha, the government’s approval to the 7th Pay panel award and a clutch of economy-boosting reforms, including relaxation of FDI rules. The rupee firmed up against the US dollar, which also came as a positive trigger.

Global brokerage firm HSBC on Monday upgraded India to the ‘overweight’ status, citing improving domestic indicators and more realistic earnings expectations, which gave a further thrust. It has also raised its Sensex target for 2016-end to 28,500 from 26,000.

Meanwhile, global brokerage firm HSBC on Monday upgraded India to the ‘overweight’ status, citing improving domestic indicators and more realistic earnings expectations, which gave a further thrust. It has also raised its Sensex target for 2016-end to 28,500 from 26,000.

Adani Ports came out on top adding 4.23 per cent after the company’s board on Saturday approved plans to explore acquisition of business support services provider TM Harbour Services. Tata Motors too was in the limelight by rising 2.40 per cent after the company reported an 8 per cent growth in June sales.

Others that had a good day in office included ONGC (3.43 per cent), ICICI Bank (2.97 per cent), Coal India (2.37 per cent), L&T (1.59 per cent), SBI (1.46 per cent) and RIL (1.34 per cent). ITC, Dr Reddy’s, Hindustan Unilever, Bajaj Auto, NTPC, Asian Paints, TCS and HDFC Bank lost due to profit-booking.

The BSE realty index jumped the most, up 2.20 per cent, followed by PSU 1.79 per cent, metal 1.67 per cent, oil & gas 1.56 per cent and capital goods 1.26 per cent. Broader markets too remained strong, with the small-cap index advancing 1.01 per cent and mid-cap 0.58 per cent.

Foreign investors net sold shares worth Rs 187.51 crore last Friday, showed provisional data. In the Asian region, Hong Kong’s Hang Seng ended 1.27 per cent higher and Shanghai Composite rose 1.91 per cent while Japan’s Nikkie climbed 0.60 per cent.

Europe too was in the green in early trade. London’s benchmark FTSE 100 index gained almost 0.4 per cent while Frankfurt’s DAX rose 0.20 per cent. Paris CAC rose 0.3 per cent. Source: PTI