Monsoon, global cues boost sentiments, Indian equities at fresh highs


Mumbai, Jun 2 (IANS): With continued optimism about a normal monsoon and the Goods and Services Tax (GST) roll-out, coupled with positive global cues, the Indian equity markets scaled new highs again on Friday.

The upward trajectory of the key indices was supported by a stable rupee and healthy buying in consumer durables, automobile and healthcare stocks, although some gains were capped as investors booked profits.

The wider 51-scrip Nifty of the National Stock Exchange (NSE) rose by 37.40 points or 0.39 per cent to a new closing high of 9,653.50 points. It touched a fresh intra-day high of 9,673.50 points.

The 30-scrip Sensitive Index (Sensex) of the BSE, too, closed at a new high of 31,273.29 points -- up 135.70 points or 0.44 per cent. It scaled a record high of 31,332.56 points intra-day.

The BSE market breadth was bullish -- with 1,464 advances and 1,231 declines.

"Both the Sensex and the Nifty hit record high in mid-morning trade, but a sell-off from the highs curbed the gains. The market sentiment was boosted by hopes of good southwest monsoon rains," Deepak Jasani, Head - Retail Research, HDFC Securities, told IANS.

"Strong overseas cues also lifted investors' spirit. Broad market indices like the BSE mid-cap and small-cap indices rose and outperformed the main indices. Major Asian markets ended on a positive note, while European indices like FTSE 100, CAC 40 and DAX, too, traded higher."

The S&P BSE mid-cap index was up by 0.72 per cent and the small-cap index by 0.50 per cent.

Anand James, Chief Market Strategist, Geojit Financial Services, said: "With global markets pushing ahead, enthused by strengthening US jobs market, and also due to prospects of European rate hike, Indian stocks also continued the march ahead."

"Pharma, one of the main laggards during this year's rally, was also seen swinging higher on (US) FDA (Food and Drug Administration) positivity. US non-farm payrolls data later in the day would be watched, but all eyes are now on RBI rate decision next week, especially with soft GDP numbers raising the decibel for rate cut calls."

On the currency front, the rupee strengthened marginally by three paise to 64.44 per US dollar from its previous close of 64.47.

In investments, provisional data with the exchanges showed that foreign institutional investors (FIIs) sold stocks worth Rs 59.13 crore, while domestic institutional investors (DIIs) bought scrips worth Rs 222.29 crore.

"This week both the indices managed to trade at fresh high and managed to retain this week's gain. Topmost gainer was Hero MotoCorp, which also touched fresh record high on better sales growth in May," Dhruv Desai, Director and Chief Operating Officer of Tradebulls, told IANS.

"Metal sector witnessed profit booking, while consumer durable stocks were the hero with the index rising to 1.15 per cent in the BSE. Realty stocks also witnessed buying today with investors finding this stock at attractive valuation."

Sector-wise, the S&P consumer durables index rose by 170.94 points, the healthcare index by 153.12 points, and the automobile index by 108.41 points.

On the other hand, the S&P BSE oil and gas index fell by 56.90 points, the metal index by 25.87 points and the capital goods index was a tad down by eight points.

Major Sensex gainers on Friday were: Hero MotoCorp, up 2.82 per cent at Rs 3,840; Cipla, up 2.63 per cent at Rs 528.65; Adani Ports, up 2.13 per cent at Rs 357.25; Wipro, up 1.88 per cent at Rs 551.95; and HDFC, up 1.74 per cent at Rs 1,610.10.

Major Sensex losers were: Gail, down 1.47 per cent at Rs 402.30; Tata Steel, down 1.27 per cent at Rs 491.60; Power Grid, down 0.77 per cent at Rs 206.15; ICICI Bank, down 0.62 per cent at Rs 318.05; and Hindustan Unilever, down 0.50 per cent at Rs 1,089.95.

  

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Title: Monsoon, global cues boost sentiments, Indian equities at fresh highs



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