Keeping the market sentiments positive for the second straight day from Friday, the benchmark BSE Sensex surged 402 points on Monday. On Reserve Bank of India’s rate cut hopes, the Sensex was closed at over two-week high of 27,507.30, which is better-than-expected corporate earnings and firm Asian cues.
Traders, however, said, China slashing interest rates by 25 basis points and US reporting strong jobs data boosted market sentiment in emerging nations, including India. “Though it is not certain if China’s latest interest cut could be taken as a positive for Indian markets, it sure did help traders’ sentiments, which were looking for cues to carry on with Friday’s short covering,” said Anand James, Co Head Technical Research Desk at Geojit BNP Paribas.
The NSE Nifty also spurted by 133.75 points or 1.63 per cent to settle at one-week high of 8,325.25. In order to assuage concerns of foreign investors slapped with MAT demand, the Government on Monday put on hold issuance of fresh notices and any further assessments on levy of this tax on such entities.
Meanwhile, tracking the smart rally in local equities in late-morning deals, the rupee appreciated further by 16 paise to quote at 63.78 against the American unit at 10.45 hours. Sustained dollar selling by exporters and some banks, too, had a positive impact on the rupee, a forex dealer said.
The Government will unveil inflation data based on the consumer price index (CPI) for April and Index of Industrial Production (IIP) data for March on Tuesday. The BSE 30-share Sensex resumed on a positive note and touched an intra-day high of 27,544.24 before settling 401.91 points or 1.48 per cent higher at 27,507.30.