Infra, banking shares help Sensex gain most in a fortnight
Smart gains in shares of banks and infra firms helped the benchmark Sensex today jump 321 points in its best single-day rise in a fortnight
Mumbai: Smart gains in shares of banks and infra firms helped the benchmark Sensex today jump 321 points in its best single-day rise in a fortnight after the RBI eased infrastructure financing norms and on signs of continued economic rebound.
The BSE index resumed better and remained in the positive terrain throughout the day before surging further to settle at one-week high of 25,549.72, a rise of 321.07 points or 1.27 per cent — the best daily show since the 325-point spurt on July 2. Yesterday, it had risen 221.67 points.
The apex bank yesterday eased financing norms for infrastructure development and affordable housing, exempting long term bonds from mandatory regulatory norms like CRR and SLR if the money raised is used for funding of such projects, which boosted the shares from interest rates related segments.
ICICI Bank was the top gainer from the 30-share Sensex pack with a rise of 4.70 per cent. Shares of Axis Bank, SBI and HDFC Bank also notched up handsome gains.
On the infra side, L&T and BHEL rose in the Sensex. Outside the BSE barometer, IDFC shot up nearly 9 per cent and Adani Ports 6.8 per cent in prominent gainers in that sector.
Metal and mining counters too were in demand after a report showed that China’s economy expanded in second quarter.
Revival of monsoon amid growth in merchandise exports in June 2014, strong European opening and fall in global crude oil prices also kept the market tempo upbeat for the second day in a row, brokers said.
Country’s exports grew by 10.22 per cent in June this year while imports rose by 8.33 per cent.
“RBI’s recent move to announce incentives to raise long term bonds for infrastructure financing was cheered. Positive global cues, easing inflation, and positive GDP growth in China, all boosted the market sentiment,” said Rakesh Goyal, Senior Vice President, Bonanza Portfolio.
The NSE 50-share CNX Nifty also shot up by 97.75 points, or 1.30 per cent, to end at 7,624.40.
Jignesh Chaudhary, Head of Research, Veracity Broking Services said: “Local equities extended its gain today also and traded positively for the second consecutive session with the help of blue chips which continued to rise as RBI on guidelines. These will give advantage to Indian infrastructure lenders.”
Asian stocks closed mixed amid slide in oil prices to the lowest in over three months yesterday. Key benchmark indices from Hong Kong, Singapore and South Korea closed with gains while those from China, Japan and Taiwan finished with losses.
However, European markets were trading remarkably higher in their late morning deals. The CAC was up by 1.32 per cent, the DAX by 1.24 per cent and the FTSE by 0.95 per cent.
Twenty four scrips out of the 30-share Sensex ended higher while the remaining six finished lower.
Besides ICICI Bank, other gainers were Hindalco 4.19 per cent, Axis Bank 3.57 per cent, Tata Steel 3.13 per cent, Sesa Sterlite 2.97 per cent, BHEL 2.54 per cent, SBI 2.26 per cent, Maruti Suzuki 2.24 per cent and M&M 1.92 per cent.
Reliance Industries 1.73 per cent, Tata Motors 1.58 per cent, Larsen & Toubro (L&T) 1.53 per cent, HDFC Bank 1.07 per cent and Hero Motocorp 1.03 per cent also ended in the green.
Among the S&P BSE sectoral indices, Realty rose by 4.28 per cent followed by Bankex 2.50 per cent, Metal 2.20 per cent, Capital Goods 1.51 per cent, Auto 1.44 per cent, Power 1.27 per cent and Refinery 1.23 per cent.
Market breadth remained positive as 1,990 stocks ended higher, 952 stocks finished lower while 103 ruled steady. The total turnover rose to Rs 3,540.77 crore from Rs 2,684.29 crore yesterday.