Sensex surges 237 pts to reclaim 27,000 as UK votes on Brexit
Mumbai : The benchmark BSE Sensex logged a surprise rally of 236.57 points today to reclaim the 27,000- mark, tracking strong gains in Asia and Europe with investors speculating that Britain will remain with the European Union.
With the UK’s fate in the EU on a knife-edge, millions of Britons began voting today in the historic referendum that will decide whether the country will stay in or leave the 28-nation bloc after an acrimonious campaign.
The last poll tracker of ‘The Daily Telegraph’ and a YouGov poll for ‘The Times’ showed ‘Remain’ at 51 per cent and ‘Leave’ at 49 per cent.
Shares of Tata Motors, having a big exposure to the UK, emerged as the biggest BSE gainer with a rise of 3.28 per cent to Rs 488. Other companies with exposure to the UK also saw revival of buying after witnessing selling pressure in yesterday’s trade. Bharat Forge, Hindalco and Infosys recorded gains of up to 2.03 per cent.
The Sensex after moving in a tight range initially, tended to look up in step with a firm global trend and recaptured the 27,000-mark to hit a high of 27,060.98. Finally, the gauge ended 236.57 points or 0.88 per cent higher at 27,002.22 — its highest closing since June 8.
The rupee strengthening by 24 paise to 67.24 against the American currency (intra-day) at the forex market, too helped.
Overall, 24 counters gained from the 30-scrip index. Other major gainers were SBI, Axis Bank, HDFC Bank, ITC Ltd, Sun Pharma, Lupin, M&M, Hindustan Unilever, Bajaj Auto, ICICI Bank, Power Grid, Tata Steel, L&T and HDFC Ltd.
Moreover, BSE mid-cap index recovered by 0.27 per cent, while small-cap index fell 0.04 per cent.
Sectorally, banking index gained the most by rising 1.61 per cent followed by auto 1.09 per cent, healthcare 0.73 per cent, FMCG 0.65 per cent, oil&gas 0.65, consumer durables 0.52 per cent and PSU 0.52 per cent.
Foreign Portfolio Investors (FPIs) sold shares worth a net Rs 41.10 crore yesterday, as per provisional data.
Globally, Hong Kong’s Hang Seng index closed 0.35 per cent higher while Japan’s Nikkei gained 1.07 per cent. European markets were too in the positive zone with London’s FTSE 1.52 per cent up, France’s CAC 1.98 per cent higher and Frankfurt- based DAX 1.97 per cent in the green.