Stocks

Monsoon, Greece effect: Sensex up 74 points; metal, capital goods stocks shine

Our Bureau Agencies Mumbai | Updated on January 24, 2018 Published on June 23, 2015

The benchmark BSE index rose on Tuesday for an eighth consecutive session of gains, its longest winning streak in nearly five months, due to renewed optimism over Greek debt talks and above normal monsoon.

Risk-on sentiment in global markets boosted the domestic sentiment after Greece's latest budget proposals raised hopes it would stave off a debt default and reach a deal with lenders later this week.

"Fair conclusion of Greece debt issue and kindness of rain gods can continue to bode well for equities and the economy," said Deven Choksey, managing director at K R Choksey Securities.

Hopes that better-than-forecasted monsoon may help the Reserve Bank of India cut rates in October than in 2016, as anticipated earlier after delivering three cuts of 25 basis points each in 2015, so far, also lifted the sentiment.

The 30-share BSE index Sensex ended higher by 74.16 points or 0.27 per cent at 27,804.37 and the 50-share NSE index Nifty moved up by 28.45 points or 0.34 per cent to 8,381.55.





Barring IT, TECk and consumer durables, all other BSE sectoral indices ended in the green. Among them, metal index was the star-performer and was up 1.71 per cent, followed by capital goods 1.41 per cent, PSU 1.18 per cent and oil & gas 0.83 per cent.

On the other hand, IT index was down 1.08 per cent, followed by TECk 0.76 per cent and consumer durables 0.44 per cent.

Top five Sensex gainers were Coal India (+3.85%), Cipla (+2.7%), L&T (+1.96%), M&M (+1.91%) and NTPC (+1.5%), while the major losers were Infosys (-2.27%), Hero MotoCorp (-2.22%), Lupin (-2.12%), Bajaj Auto (-1.00%) and BHEL (-0.99%).





State-run banks gained on hopes of capital infusion. The country plans to inject about $3 billion into state-owned banks this fiscal year, and potentially $6 billion next year, to help recapitalise the sector and allow it to meet Basel III rules, Finance Secretary Rajiv Mehrishi told news channel CNBC-TV18.







Global markets

European shares extended the previous session’s sharp rally and climbed to a three-week high on Tuesday, with growing expectations that Greece was getting closer to strike a deal with its international creditors boosting the sentiment further.

The pan-European FTSEurofirst 300 index was up 0.9 per cent at 1,579.34 points by 0710 GMT after rising to a high of 1,580.14, the highest level since early June. The index had closed 2.4 per cent higher in the previous session.

Asian shares extended gains on Tuesday after a gauge of Chinese factory activity suggested signs of stabilisation, and Greece's latest budget proposals raised hopes it would stave off a debt default and reach a deal with lenders later this week.

MSCI's broadest index of Asia-Pacific shares outside Japan was up 0.7 per cent.

US stocks had ended higher on Monday, with the Nasdaq closing at a record as hopes grew that a deal would be reached to prevent Greece from defaulting on loans.

The Dow Jones industrial average rose 104.53 points or 0.58 per cent to 18,120.48, the S&P 500 gained 13 points or 0.62 per cent to 2,122.99 and the Nasdaq Composite added 36.97 points or 0.72 per cent to 5,153.97.

Published on June 23, 2015
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