Market registered its biggest weekly gain since May as the Sensex rallied over 145 points to end at 27,145, an 8-month high, buoyed by data that showed manufacturing activity gathered steam last month amid strong foreign capital inflows. Globally, shares traded strong, which came as strong cues for the domestic market.
In the process, the NSE Nifty reclaimed 8,300 to close at an over 10-month high of 8,328. According to the monthly PMI survey, India’s manufacturing hit a three-month high in June, backed by a stronger increase in new business orders. The Nikkei Markit India Manufacturing PMI rose to 51.7 in June, from 50.7 in May. Progress of monsoon has rekindled interest in India growth story after the weather office said rainfall for the week ended June 29 is 1 per cent above the average.
That apart, a heightened sense of optimism because of steps to liberalise the FDI regime further, Cabinet approval to pay hike for Government employees and improved chances of GST passage in the Upper House of Parliament played its part in the rally. Rising for the fifth day, the Sensex settled higher by 145.19 points, or 0.54 per cent, at 27,144.91, its highest closing since October 27, 2015, when it ended at 27,253.44. The index had gained 602.01 points in the previous four sessions.
At the close, the 50-share NSE Nifty was at 8,328.35, up 40.60 points, or 0.49 per cent -- a level last seen on August 20 last year. For the week, the Sensex climbed 747.20 points, or 2.83 per cent, while NSE Nifty surged 239.75 points, or 2.96 per cent. For both, the jump is their best weekly gain since May 27.