Sensex Soars 446 pts to End at 17-month High on Global Cues, Nifty at 8,943 pts

Mumbai: After a day’s gap, the markets were closed on Monday on account of Ganesh Chaturthi, the domestic equity markets on Tuesday rose further high on positive global cues and healthy inflow of foreign funds. BSE Sensex surges 445.91 pts to 28,978.02 points on positive global cues.

Sensex ended the session at its highest closing level since April 13, 2015. NSE Nifty gained 133.35 points or 1.51 percent to end the session at 8,943 points. Sensex soared over 500 points in intra-session to hit 18-month high of 29,013.40 points.

Realty, oil & gas, consumer durables, capital goods, banks and auto stocks led Nifty to further high. Market analysts see four major reasons to the surge on the bourses. The weakening US rate hike prospects, heavy inflows of FPIs, PMI indicating further room for lowering interest rates and technical reason.

Anand James, Chief Market Strategist at Geojit BNP Paribas Financial Services, said: “The equity markets have touched new highs of the year since March 2015. The global markets were largely positive on lower chances of a US rate hike. Moreover, healthy inflow of foreign funds gave a positive momentum to the domestic markets.”

Asian markets rose for second day as rate hike by US Federal Reserve subdued over the weak non-farm payroll data. Equities on European bourses rose marginally and held near their highest levels since April.

Foreign portfolio investors (FPIs) infused over Rs9,000 crore into the Indian markets. The data on manufacturing sector (PMI), which released on Monday, showed more room for RBI to lower interest rates. Technical outlook also helped the stocks to move upwards as Nifty surpassed 8,700 and 8,728 levels to reach fresh 52-week high above 8,800 points. Analysts forecast the latest consolidation breakout may push Nifty to key 9,000 level.

Dhruv Desai, Director and Chief Operating Officer of Tradebulls, said: “The CNX Nifty held the initial gains and traded firm. IT stocks faced some profit booking at higher levels, while most banking, auto and pharma stocks traded with firm sentiments. Aviation stocks traded down on higher crude oil prices and lack of buying support from traders. FMCG (fast moving consumer goods) stocks traded firm, while oil and gas sector stocks traded with mixed sentiments on profit booking.”

Source: PTI/ IANS