Sensex rises 161 pts on jump in factory output
Mumbai: The benchmark BSE Sensex today rose 161 points to 26,586.55 on account of better-than-expected factory output data and steady inflation, while value-buying in beaten-down stocks also added to the upside.
Besides, sentiment also turned positive on reports of steady progress in monsoon, traders said.
Industrial production grew at a two-month high of 4.1 per cent in April, primarily driven by manufacturing sector, while retail inflation edged up to 5.01 per cent in May.
Meanwhile, a data showed wholesale inflation remained in the negative zone for the seventh consecutive month in May following easing prices of fuel and food items.
In volatile movements, the 30-share Sensex after falling to the day’s low of 26,307.84, staged a strong comeback at a rapid pace to hit high of 26,728.60. On profit-booking towards the close at improved levels, it trimmed gains and settled 161.25 points or 0.61 per cent higher at 26,586.55.
The gauge had gained 54.32 points in the previous session.
The 50-share NSE Nifty managed to end above 8,000-level by rising 31 points or 0.39 per cent to 8,013.90 after shuttling between 8,057.70 and 7,944.85 intra-day.
The rise in Sensex was supported by gains in Sun Pharma with gain of 2.95 per cent. Bajaj Auto surged 2.13 per cent, HDFC Ltd 2.07 per cent and RIL 1.33 per cent were among other gainers.
Among 30-Sensex constituents, 17 ended higher.
Shares of Cairn India rose by 3.79 per cent to Rs 187.60 as private miner Vedanta moves to absorb the oil firm in a USD 2.3-billion deal to create India’s largest diversified natural resources company. Vedanta ended 1.49 per cent down.
The broader markets, however, saw a mixed trend with the BSE small-cap index rising 0.42 per cent, while mid-cap shedding 0.01 per cent.
Meanwhile, foreign investors sold shares worth Rs 670.96 crore last Friday, as per provisional data.
Globally, other Asian markets ended lower and European stocks were down in their early trade.