“Aviation stocks failed to recover tracking firm sentiments in crude oil prices”. BSE Sensex surges 445.91 pts to 28,978.02 points on positive global cues.
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Domestic markets, which opened today for the first time since Friday, reacted to a weak USA jobs data released last week, diminishing hopes for a near-term United States interest rate hike. Earlier, it had hit a record high of Rs 100 lakh crore in November 2014.
Globally, European stocks rallied on the back of a jump in Asian equities.
Analysts also say that new Reserve Bank Governor Urjit Patel is likely to maintain a strong anti-inflationary stance like his predecessor Raghuram Rajan.
On the sectoral front, auto stocks remained in top gear post fabulous August sales figure.
He pointed out that while most oil and gas stocks faced resistance at higher levels due to lack of buying interest from traders, sugar stocks traded with mix sentiments on short covering.
Benchmark indexes Sensex and the Nifty climbed about 3 percent to hit fresh 52-week highs last week after the Union Cabinet approved recent “radical” changes in FDI policy and the RBI’s latest annual report observed that India’s growth prospects in financial year 2016-17 are somewhat brighter than the previous fiscal. The Nifty50 zoomed 133 points to close at 8,943, its highest closing level since March 3, 2015.
The 30-share BSE Sensex resumed higher and continued its upward journey to cross the 29,000-mark for the first time since April 15, 2015.
The BSE Bankex rose 3%, its sixth consecutive gain and its largest single-session advance since late May.
Second-line stocks also witnessed buying, lifting the mid-cap index by 1.84 per cent and small-cap by 0.95 per cent.
The S&P BSE banking index augmented by 675.97 points, followed by the automobile index, which rose by 631.26 points, and the consumer durables index gained 367.26 points.
Private lending heavyweights Axis Bank and ICICI Bank, Tata Motors, Hero MotoCorp, Maruti Suzuki India and NTPC led gains on the Sensex Tuesday, while Coal India and Tata Consultancy Services ended lower.
Among losers, TCS plunged by 1.17% to Rs 2,484.05 and Coal India slipped by 1.11% to Rs 328.80.
Dalal Street investors have become richer by Rs 10.70 lakh crore in 2016. Europe was also higher with Germany’s Dax higher by 0.28%, France’s CAC 40 by 0.11%, however, the UK’s tumbled by 0.32%.
Indian shares rose to over one-year highs Tuesday, as risk appetite improved after a disappointing US employment report dashed expectations of a Federal Reserve rate increase this month.
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The Fed raised rates for the first time in nearly a decade last December, but has stood pat since then as global developments including Britain’s vote to leave the European Union and mixed domestic data have clouded economic outlook. Chinese shares ended higher, led by gains in consumer and industrial stocks.
