Sensex up and running after Greece deal, vaults 300 points
Mumbai: Indian market gave the Greece deal a big thumbs-up, surging almost 300 points for the second day — its biggest single-day gain in three weeks — driven by across-the-board buying activity and tracking upbeat global stocks.
Hopes of a rate cut by the Reserve Bank in the wake of weak IIP numbers buoyed trading sentiment too.
Industrial production growth in May slowed to 2.7 per cent from 5.6 per cent a year ago, hurt by a dismal show by manufacturing, strengthening the case for a rate reduction.
Besides, a higher closing at other Asian markets and a better opening in European markets, which jumped up to 3 per cent, had a positive impact, brokers said.
The 30-share index opened higher and quickly regained the crucial 28,000-mark in afternoon trade to hit the day’s high of 28,005.17.
But profit-booking at improved levels dragged it down below the 28,000-mark, which settled at 27,961.19, a rally of 299.79 points, or 1.08 per cent, its biggest single-session gain since June 22 when it had rallied 414.04 points.
Intra-day, the gauge had scaled the 28,000-level for the first time since July 8.
The gauge has now gone up 387.53 points in two straight sessions.
Similarly, the 50-share Nifty recaptured the 8,400-level to hit a high of 8,471.65, before settling higher by 99.10 points, or 1.19 per cent, at 8,459.65.
GAIL topped the gainers list among Sensex stocks by climbing 3.55 per cent, followed by HDFC, Maruti, NTPC, Wipro and Hindalco.
Equity brokers said sentiment moved north after other Asian bourses climbed and European markets opened higher following reports that Greece had finally struck a bailout reform deal with its creditors that keeps it in the euro zone.
Besides, China’s Shanghai Composite advanced for the third straight session after a recent spell of volatility, which too helped, they said.
In the 30-pack Sensex, 28 ended higher and two lower.
Broader markets were also in a better shape, with the mid-cap and small-cap indices adding up to 1.44 per cent.
Sector-wise, BSE IT index gained the most by rising 1.71 per cent, followed by technology, auto, healthcare, oil & gas and power.
Meanwhile, foreign investors sold shares worth Rs 465.27 crore last Friday, provisional exchange data showed.
In Asia, Shanghai Composite climbed 2.39 per cent. While Japan’s Nikkei was up 1.57 per cent, Hong Kong’s Hang Seng gained 1.30 per cent.