Markets join global rally; Sensex surges over 300 points

Tracking positive global cues, Indian equity markets extended early gains and continues trading strong in the late morning session on week’s last day. BSE Sensex surged by 300 points, while Nifty close to add 100 points. However, investors are now waiting for some important policy measure from the government after presidency poll. In currency markets, rupee appreciated against dollar on Friday, extending gains for second successive session. On sectoral front all were trading in green. In global markets, most of the Asian shares were trading in green on ECB President Mario Draghi’s statement that bank is prepared to take whatever measures needed to preserve the euro. Back home, the market breadth favoring positive trend; there were 1,549 shares on the gaining side against 803 shares on the losing side while 98 shares remained unchanged.

The BSE Sensex is currently trading at 16,945.61 up by 305.73 points or 1.84% after trading as high as 16,967.08 and as low as 16813.13. There were 26 stocks advancing against 4 declines on the index.

The broader indices were also trading on a positive note; the BSE Mid cap index up 1.29% while Small cap index was up 1.17%.

On the BSE sectoral space, Metal up by 2.87%, Bankex up by 2.68%, Realty up by 2.06%, Power up by 2.02%, and Consumer Durables up by 1.97% while there was no loser on the index.

Sterlite Industries up by 4.96%, Tata Motors up by 4.69%, Tata Steel up by 4.44% Hindalco Industries up by 3.73% and ICICI Bank up by 3.53% were major gainers on the Sensex, while Hero MotoCorp down by 0.94%, Dr Reddys Lab down by 0.22%, Bajaj Auto down 0.19% and Maruti Suzuki down by 0.08%, were major losers in the index.

Meanwhile, with given political obligation taking toll over much needed government’s reforms, Prime Minister Manmohan Singh will meet India Inc on August 1, to take on board the methods for improving the investment climate. This would be the first meeting between the industry leaders and the current Prime Minister, which has taken an additional charge of the finance ministry under its hat as on June 26 until the successor is named.

Showing the sign of slowing global economy, foreign direct investment (FDI) in India extended its decline in May with inflows slipping to $1.32 billion from $4.66 billion in the same month last year. The meeting is broadly expected to take up macro-economic and slowing investments issues.

The meeting comes in light of the expectations of a push in reforms, especially FDI in multi-brand retail and aviation and the deregulation of diesel prices, however, not much is expected to be happen before the vice presidential polls, which would be a day ahead of Parliament session is scheduled.

The S&P CNX Nifty is currently trading at 5,142.05, up by 99.05 points or 1.96% after trading as high as 5,149.95 and as low as 5,102.00. There were 46 stocks advancing against 4 declines on the index.

The top gainers on the Nifty were Sterlite Industries up by 5.34%, Tata Motors up by 4.49%, Tata Steel up by 4.43%, ACC up by 3.71% and ICICI Bank up by 3.61%. While, Hero Moto down by 0.64%, Dr Reddy down by 0.28%, Bajaj-Auto down by 0.13% and Maruti Suzuki down by 0.01% were major losers on the index.

Mostly Asian equity indices were trading in green; Hang Seng index up by 2.07%, Nikkei 225 up 1.46%, Taiwan Weighted up 2.21%, Shanghai Composite up 0.18%, Straits Times up 0.24%, Kospi Composite Index up 2.62% and Jakarta Composite was up by 1.58%, while KLSE Composite down 0.10% was the only loser.