Markets again closed above 0.3 per cent up on the third consecutive trading session on Monday. After a weak opening, markets recovered towards the second half of the day and Sensex finally managed to close above 20,000 mark at 20,034.48, 76 points up. Nifty also gained nearly 22 points and closed at 6,030 levels.
The markets started on a weaker note as investors went for profit booking fearing bad wholesale price index numbers. But after the WPI came out to be 4.86 per cent, as per market expectations, investors were again seen buying.
Experts believe that 6,000 level is an important levels and till Nifty continues to trade above it, markets look strong. Another factor that pushed the Indian markets high was the good economic data announced by China. China’s second quarter economic growth was 7.5 per cent, inline with the market expectations.
Real Estate sector saw recovery and finally closed nearly 2 per cent up followed by FMCG and Capital Goods sector which rose 1.19 per cent and 0.89 per cent respectively. Profit booking was seen in Infosys which dragged the information technology sector down and finally closed flat 0.03 per cent down. Infosys fell above 2 per cent after it jumped nearly 12 per cent in the last session. Power index was the biggest loser in the markets which fell by 0.78 per cent.
Punjab National Bank rose 5.3 per cent along with Bank of Baroda which closed 4.31 per cent up. While Coal India fell 2.57 per cent and was followed by NTPC and Tata Steel which fell above 2 per cent respectively.
Rupee snapped its recent rally and again fell below 60 per dollar mark in Monday’s session hitting a low of 60.08 finally closed at 60.05 per dollar. Experts feel that the currency weakened due the fall in market sentiment because of increase in dollar demand from banks and importers, last week’s bad IIP numbers, fall in exports and increase in retail inflation.