Spurt in SBI shares after earnings and heavy buying in power sector propelled Sensex and Nifty to new closing peaks on Friday. They logged their best single-day rise in 10 days.
The indices also logged third straight week of gains. Both Sensex and Nifty have gained 10 per cent in three weeks.The BSE Sensex on Friday spurted by 319 points, or 1.31 per cent, to end at a new historic closing high of 24,693.35 supported by buying in banking, refinery, capital goods and auto counters amid firm global markets.
The Sensex surpassed previous record closing of 24,376.88 reached on May 20. The 319-point rise was its best single-day gain since May 13, 2014 when it increased by 320 points.Similarly, wide-based 50-issue CNX Nifty of NSE flared up by 90.70 points, or 1.25 per cent, to end at new closing peak of 7,367.10. It crossed previous peak of 7,276.40 (May 22).
Country’s largest bank SBI, was the top gainer from the Sensex pack with a rise of 9.69 per cent despite decline in the Q4 net profit but asset quality showed signs of improvement. “SBI reported healthy performance on the asset quality front while operating performance came ahead of our estimates,” said Angel Broking.
RIl, ONGC, l&T, HDFC, Maruti Suzuki, ICICI Bank, Sesa Sterlite and M&M were among the 22 Sensex gainers.Investors heavily bought into power stocks, including NTPC and Tata Power, on reports that Modi-led NDA government is likely to harness solar power and give a fillip to development of offshore wind energy. Adani Power, Reliance Power, Power Grid and JP Power also hogged the limelight.
Jignesh Chaudhary, Head of Research, Veracity Broking Services said: “local equities continued to trade strong. It is expected that the new Government will form business friendly economic policies which will remove bottlenecks and will eventually help the economy to grow.”
A clear mandate for the BJP has rekindled hope for structural reforms and better investment climate and the country’s growth is likely to accelerate to 6.5 per cent in FY16, a Goldman Sachs report said today.
“Amid volatility, the benchmarks were seen registering decent gains. In absence of any major domestic cue, positive global market and better than expected result from SBI, kept sentiments firm. Considering the close, we expect index to extend its positive move on Monday too,” said Jayant Manglik, President-retail distribution, Religare Securities.
The next trigger will be announcement of RBI’s monetary policy early next month and also declaration of Union Budget proposals in the month of July.Asian shares closed higher as investors lapped up signs of improving momentum in the global markets. Key benchmark indices in China, Hong Kong, Japan, Singapore, South Korea and Taiwan closed with upto 0.87 per cent gains.
European markets were last trading mixed with upward bias in their late morning deals. France’s CAC was up by 0.13 per cent, Germany’s DAX 0.24 per cent while the UK’s FTSE was down 0.14 per cent.
Meanwhile, Foreign Institutional Investors (FIIs) sold shares worth a net Rs 294.99 crore yesterday, as per provisional data from the stock exchanges.As regardes rupee, it retreated from 11-month high level and depreciated five paise to end at 58.52 against the US dollar but managed to clock the fourth successive weekly rise.
Sustained capital outflows weighed on the rupee while strong local equities limited the rupee fall to some extent, a forex dealer said.At the Interbank Foreign Exchange (Forex) market, the domestic currency commenced slightly better at 58.45 a dollar from previous close of 58.47. It then moved erratically in a range of 58.33 and 58.56, before settling at 58.52, a net fall of five paise or 0.09 per cent.
Pramit Brahmbhatt, Veracity Group CEO said: “Rupee posted 11-month high with the help of strong local equities. Rupee gave up all the gains as the central bank intervened in the market via state-run lenders.