Sensex jumps 800 points to record highs on FII buying, monsoon progress

Moscow, June 30 (SocialNews.XYZ) Buoyancy in global markets and the advance of monsoon lifted Indian stock markets to new highs with the BSE Sensex surging by more than 800 points on Friday.

Domestic equities continued their northbound journey after a day’s break, supported by positive global data, healthy FII buying and strong progress in monsoon.

Nifty opened gap up and strengthened throughout the day to close near the day’s high with gains of 213 points (+1.1 per cent) at 19,186 levels. The broader market too participated in the rally with the Nifty midcap 100 at a fresh record high. All sectors ended in the green, except metals, said Siddhartha Khemka, Head-Retail Research, Motilal Oswal Financial Services.

Auto and IT stocks are in the limelight as the BSE Sensex closed at a record 64,718 points. The Sensex is well past the 64,000 mark and breaching new highs on strong global cues.

Among the Sensex stocks, M&M was the top performer gaining 4.1 per cent. Infosys jumped 3.2 per cent while Indusind Bank was up 3 per cent. Sun Pharma gained 2.8 per cent, TCS up 2.6 per cent, Maruti up 2.5 per cent and L&T was up 2.2 per cent.

Indian indices are on a record-breaking spree, ending the month of June with gains of 3.5 per cent (Nifty) on the back of strong FIIs flow of Rs 20,900 crore MTD and the advance of the southwest monsoon that boosted investor sentiments.

“We expect the uptrend in Indian equities to continue in the near term," Khemka added.

Next week, the market will take cues from economic data to be released locally as well as globally. Investors would also watch out for FOMC minutes to get insights into the US Central Bank’s future course of direction. The auto sector is expected to be in the limelight, as companies would release monthly sales data.

Vinod Nair, Head of Research at Geojit Financial Services, said the lack of global support had restrained the Indian indices from pursuing their record highs earlier, despite the presence of a resilient domestic macroeconomic background.

With positive surprises assisting buoyancy in the global market and the advance of the southwest monsoon, the domestic market succeeded in marching to new highs with renewed strength. Global investor sentiments were uplifted by a favourable revision in Q1 GDP, a fall in jobless claims, and the positive outcome of the Fed’s US bank stress test, he added.

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Source: IANS