Stocks: Both the indices, BSE Sensex and NSE Nifty, surged further by 496 points and 156 points, respectively, on persistent buying from investors on hopes of rate cut from Reserve Bank of India (RBI) in view of above-average monsoon rains.
India Meteorological Department (IMD) said in its daily monsoon update showed that the southwest monsoon has been further advanced into remaining parts of north Arabian Sea. For the country as a whole, the cumulative rainfall during this year’s monsoon season was 24 per cent above the Long Period Average (LPA) until June 24.
Short-covering in view of expiry of futures and options June contract on June 25 also boosted the market sentiment.
The benchmark BSE index marked its highest close in a month on Thursday, as mortgage lenders such as Housing Development Finance Corp rose on hopes the government’s push on housing would aid income.
Indian shares edged lower on Friday as private lenders retreated after the central bank’s stress tests showed a significant jump in bad loans for the sector, but indexes still posted a second consecutive week of gains.
Sensex resumed higher at 27,427.19 and hovered in a range of 27,968.75 and 27,417.03 before ending at 27,811.84, showing a gain of 495.67 points or 1.81 per cent.
Sensex has gained 1,386.54 points or 5.25 per cent in the two weeks.
The Nifty also rose by 156.15 points or 1.90 per cent to 8,381.10. It has gained 398.20 points or 4.99 per cent in two weeks. Twenty-two stocks out the 30-share sensex pack ended higher while 8 finished lower.
Major gainers were Bajaj Auto (5.59 pc), Dr Reddy’s (4.23 pc), Coal India (4.19 pc), HDFC (4.11 pc), BHEL (3.83 pc), Larsen (3.54 pc), HUL (3.33 pc), Maruti (3.31 pc), HDFC Bank (3.19 pc), Axis Bank (2.46 pc), Sun Pharma (2.45 pc), ICICI bank (2.18 pc), SBI (1.88 pc) and TCS (1.68 pc).
However, Bharti Airtel fell by 3.77 per cent, Hindalco 2.99 per cent, Tata Steel 2.21 per cent and ONGC 1.80 per cent.
Among the BSE sectoral indices, realty rose by 6.50 per cent, consumer durable 2.93 per cent, captial goods 2.83 per cent, bankex 2.80 per cent, power 1.92 per cent and healthcare 1.85 per cent.
Small-cap and mid-cap indices also rose by 1.66 per cent and 1.90 per cent, respectively on sustained buying from retail investors.
The total turnover during the week on BSE and the NSE was Rs 13,051.34 crore and Rs 79,882.47 crore, respectively, during the week as against the last weekend’s level of Rs 14,521.82 crore and Rs 71,981.97 crore. owever, fresh foreign capital inflows into equity market in view of strong stock market restricted the rupee’s loss against the dollar, a forex dealer said.
Foreign portfolio investors (FPIs) pumped in USD 139.45 million dollars during the first four days of the week, as per the Sebi’s record.
The rupee resumed higher at 63.52 per dollar as against the last weekend’s level of 63.55 per dollar at the Interbank Foreign Exchange (Forex) Market on initial selling of dollars by banks and exporters on hopes of resumption foreign capital inflows.
However, it dropped to 63.7050 on fresh dollar demand from importers, mainly from oil refiners, before finishing at 63.64 per dollar, showing a loss of nine paise or 0.14 per cent.
The domestic currency hovered in a range of 63.4600 and 63.7050 per dollar during the week.
However, many investors chose to stay on the sidelines with no fresh trading cues ahead of last-ditch Greek bailout talks.
Meanwhile, the Indian benchmark Sensex ended higher for the second consecutive week, by gaining another 495.67 points 1.81 per cent.
PTI