Ignoring slowdown in growth of six core industries, the BSE Sensex extended gains by 105 points today to close at a month's high of 18,609 as funds bought blue chips, encouraged by higher exports and auto sales.
Strong demand for heavyweights like L&T, Infosys, Bharti, TCS, SBI, HDFC, NTPC, HUL, RCom and Maruti Suzuki helped the Sensex move up for the second day in a row.
Brokers said there has been heavy buying by FIIs in past few days despite some negative factors like fall in GDP growth in the January-March quarter, lack of firm cues from overseas markets, inflation and high interest rates.
They pumped in Rs 1,310.98 crore yesterday as per the provisional data. FIIs have picked up shares worth Rs 1,594.9 crore in three sessions since May 26, as per SEBI data.
The 30-share index of Bombay Stock Exchange opened with gains and moved in the positive terrain throughout the day before closing at 18,608.81 -- up 105.53 points or 0.57 %. Yesterday, it had gained 271.22 points or 1.49 %.
Similarly, the NSE 50-issue Nifty improved further by 31.85 points or 0.57 % to 5,592.00.
Exports in April grew 34.42 %, over the same month last year, to USD 23.8 billion, while imports picked up 14.13 % to USD 32.8 billion.
Auto stocks were in demand following higher monthly sales reported by companies like Maruti, Hero Honda and Tata Motors.
However, growth in core industries - crude oil, petroleum refinery products, coal, electricity, cement and finished steel - slowed to 5.2 % in April, from 7.5 % in the same month last year.
"The Indian market managed to outperform world equities, thanks to encouraging auto sales numbers and exports data," said IIFL Head of Research Amar Ambani.
"There seems to be a growing feeling that with the drop in Q4 GDP and deceleration in the core sector growth, RBI might just refrain from a larger increase in policy rates," Ambani said, adding that FII inflows have improved, pushing up the market.
Asian stocks ended mixed. Key indices in China, Japan, Singapore and Taiwan closed with moderate gains, while Hong Kong's and South Korea's finished with modest losses.
European markets too displayed a tight range.
Overall, 22 of the 30 Sensex-based scrips ended in the green, while 7 settled in the red. ONGC remained stable.
RCom was the top gainer from the Sensex pack, up 4.81 %, followed by NTPC (3.43 %), L&T (2.33 %), Bharti Airtel (1.95 %), REL Infra (1.81 %), Maruti (1.74 %), HUL (1.67 %), TCS (1.42 %), SBI (1.39 %), Tata Power (1.11 %), Sterlite Ind (1.05 %), HDFC (0.83 %), Infosys (0.72 %).
However, Tata Motors declined by 1.19 %, Tata Steel (1.17 %), DLF (0.90 %) and RIL (0.53 %).
Among sectoral indices, BSE-CG rose by 1.38 %, BSE-Teck (1.06 %), BSE-PSU (0.96 %), BSE-Power (0.96 %) and BSE-IT (0.87 %).
Small-cap as well as Mid-cap counters attracted good retail investors. The BSE-Small cap closed higher by 0.87 % and the BSE-Midcap by 0.82 %.
The total market breadth at BSE was strong as 1,795 stocks ended with gains, while 1,005 finished with losses. The total volume, however, dropped to Rs 2,711.84 crore from Rs 3,031.44 crore yesterday.
Strong demand for heavyweights like L&T, Infosys, Bharti, TCS, SBI, HDFC, NTPC, HUL, RCom and Maruti Suzuki helped the Sensex move up for the second day in a row.
Brokers said there has been heavy buying by FIIs in past few days despite some negative factors like fall in GDP growth in the January-March quarter, lack of firm cues from overseas markets, inflation and high interest rates.
They pumped in Rs 1,310.98 crore yesterday as per the provisional data. FIIs have picked up shares worth Rs 1,594.9 crore in three sessions since May 26, as per SEBI data.
The 30-share index of Bombay Stock Exchange opened with gains and moved in the positive terrain throughout the day before closing at 18,608.81 -- up 105.53 points or 0.57 %. Yesterday, it had gained 271.22 points or 1.49 %.
Similarly, the NSE 50-issue Nifty improved further by 31.85 points or 0.57 % to 5,592.00.
Exports in April grew 34.42 %, over the same month last year, to USD 23.8 billion, while imports picked up 14.13 % to USD 32.8 billion.
Auto stocks were in demand following higher monthly sales reported by companies like Maruti, Hero Honda and Tata Motors.
However, growth in core industries - crude oil, petroleum refinery products, coal, electricity, cement and finished steel - slowed to 5.2 % in April, from 7.5 % in the same month last year.
"The Indian market managed to outperform world equities, thanks to encouraging auto sales numbers and exports data," said IIFL Head of Research Amar Ambani.
"There seems to be a growing feeling that with the drop in Q4 GDP and deceleration in the core sector growth, RBI might just refrain from a larger increase in policy rates," Ambani said, adding that FII inflows have improved, pushing up the market.
Asian stocks ended mixed. Key indices in China, Japan, Singapore and Taiwan closed with moderate gains, while Hong Kong's and South Korea's finished with modest losses.
European markets too displayed a tight range.
Overall, 22 of the 30 Sensex-based scrips ended in the green, while 7 settled in the red. ONGC remained stable.
RCom was the top gainer from the Sensex pack, up 4.81 %, followed by NTPC (3.43 %), L&T (2.33 %), Bharti Airtel (1.95 %), REL Infra (1.81 %), Maruti (1.74 %), HUL (1.67 %), TCS (1.42 %), SBI (1.39 %), Tata Power (1.11 %), Sterlite Ind (1.05 %), HDFC (0.83 %), Infosys (0.72 %).
However, Tata Motors declined by 1.19 %, Tata Steel (1.17 %), DLF (0.90 %) and RIL (0.53 %).
Among sectoral indices, BSE-CG rose by 1.38 %, BSE-Teck (1.06 %), BSE-PSU (0.96 %), BSE-Power (0.96 %) and BSE-IT (0.87 %).
Small-cap as well as Mid-cap counters attracted good retail investors. The BSE-Small cap closed higher by 0.87 % and the BSE-Midcap by 0.82 %.
The total market breadth at BSE was strong as 1,795 stocks ended with gains, while 1,005 finished with losses. The total volume, however, dropped to Rs 2,711.84 crore from Rs 3,031.44 crore yesterday.
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