Sensex takes oil comfort, ends above 28,000 level
Mumbai: The benchmark BSE Sensex today rallied over 265 points to close above the crucial 28,000 mark for the first time since July 7 on across-the-board buying amid fresh capital inflows.
Investor concerns have eased somewhat after the Greece bailout deal even as cues from global markets remained mixed.
The investor appetite improved further on hopes that softer oil prices in global markets would help India curb its twin deficits and inflation as it imports almost one-third of its crude requirements, brokers said.
Global crude prices fell following a nuclear deal between Iran and six major world powers as the lifting of sanctions means Iran will export more oil to the already oversupplied market.
Brent was down 0.68 per cent at USD 58.11 per barrel.
Oil rig provider Aban Offshore was in the limelight for the second straight day, which rose another 1.87 per cent.
Value-based buying in several blue-chips supported the rally too.
The key index opened on a strong footing and reclaimed the 28,000 mark to touch the day’s high of 28,218.37. It finally settled higher by 265.39 points, or 0.95 per cent, at 28,198.29, its highest closing since July 7.
Investors are also keenly tracking US Fed Chair Janet Yellen’s testimony in the US Congress.
Of the 30-pack Sensex, 27 ended in the green, with Maruti Suzuki emerging as the top performer.
Maruti Suzuki India, the country’s biggest carmaker, hit an all-time high of Rs 4,182 before settling 2.63 per cent higher at Rs 4,155.
Other blue-chips that supported the rally included Tata Motors, Wipro, TCS, M&M and Lupin.
Also, the 50-share Nifty recaptured the 8,500 level and went up to hit the day’s peak of 8,531.40 and finally settled higher by 69.70 points, or 0.82 per cent, at 8,523.80.
This is the highest close since April 17 when the Nifty ended at 8,606.
Sector-wise, BSE Auto gained the most (up 1.35 per cent), followed by IT, technology, healthcare, realty and capital goods.
Buying activity in small- and mid-cap sectors also picked up, with the BSE small-cap index rising 0.49 per cent and mid-cap 0.08 per cent.
Globally, Asian markets closed the day mixed after data showed China’s economy grew more than expected in the second quarter. European markets eased at the start of trading as Greece’s Parliament prepared to vote on its new bailout proposals.
Meanwhile, foreign portfolio investors (FPIs) net bought shares worth Rs 269.90 crore yesterday, according to provisional exchange data.