Sensex gains 517 points; capital goods stocks rise

Mumbai, March 30 (IANS) After eight consecutive sessions when the markets either ended flat or in the red, a benchmark index of Indian equities markets, the 30-scrip Sensitive Index (Sensex), gained over 500 points or nearly two percent in Monday’s trading session.

The wider 50-scrip Nifty of the National Stock Exchange (NSE) also made healthy gains during the day’s trade. It closed 150.90 points or 1.81 percent up at 8,492.30 points.

The Sensex of the S&P Bombay Stock Exchange (BSE), which opened at 27,655.79 points, closed at 27,975.86 points, up 517.22 points or 1.88 percent from the previous day’s close at 27,458.64 points.

The Sensex touched a high of 28,017.97 points and a low of 27,624.76 points in the intra-day trade.

All sector-based indices of the BSE ended the day’s trade with substantial gains. Healthy buying was observed in capital goods, banks, automobile, fast moving consumer goods (FMCG), healthcare, metal and information technology (IT) sectors.

The S&P BSE capital goods index gained by 476.79 points, bank index rose by 372.09 points, automobile index was higher by 292.72 points, FMCG index climbed 160.77 points, healthcare index augmented by 156.30 points, metal index increased by 144.48 points and IT index was up 113.48 points.

The markets were extremely volatile throughout the week. Friday was the eighth consecutive session when the markets either ended flat or in the red. On Thursday, the markets closed 654 points or 2.33 percent down.

The BSE Sensex had closed Wednesday’s trade down 50 points. On Tuesday, it slipped by 30 points. On March 23, the market closed down 69 points.

In the previous week, the Sensex closed Friday’s trade 208.59 points down. On March 19, it declined by 152.45 points and on March 18 it closed the day’s trade down 114 points.

Charting Monday’s trade, an analyst said the markets made healthy gains, on the back of strong buying in the frontline stocks. Global markets were also in the green.

“Reduction in crude prices and improvement in F&O (futures and options) liquidity, post a poor March expiry (-7 percent return) provided essential support to the market,” said Vinod Nair, head – Fundamental Research, Geojit BNP Paribas Financial Services.

According to Nair, the immediate factors will be role of RBI (Reserve Bank of India) meet on April 7 and the release of fourth-quarter results.

“We cannot expect a immediate cut in interest rate now. But, we have to look at scope to surprise the market through CRR (capital reserve ratio) and forward outlook,” Nair added.

Sanjeev Zarbade, vice president, private client group research, Kotak Securities said the market staged a spectacular rebound on Monday with the Nifty reclaiming the 8,500-level and Sensex hitting the 28,000-mark intra-day.

“Global cues were moderately positive as the US markets closed mildly higher on Friday as investors digested US Fed chairman Janet Yellen’s remarks,” Zarbade said.

The major Sensex gainers on Monday were: Bharti Airtel, up 3.55 percent at Rs.389.55; HDFC, up 3.52 percent at Rs.1,306.20; ONGC, up 3.49 percent at Rs.314.70; ITC, up 3.41 percent at Rs.327.90; and Coal India, up 3.27 percent at Rs.358.80.

The losers were: Hindalco Inds, down 1.61 percent at Rs.131.40; Tata Power, down 0.73 percent at Rs.74.55; and Reliance Industries, down 0.17 percent at Rs.810.35

Among the Asian markets, Japan’s Nikkei went up by 0.65 percent and Hong Kong’s Hang Seng closed higher by 1.51 percent. China’s Shanghai Composite Index gained 2.62 percent.

In Europe, London’s FTSE 100 was down by 0.44 percent, while France’s CAC 40 was higher by 1.12 percent and Germany’s DAX Index was up 1.44 percent at the closing in the Indian markets.

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