Comments
Reclaiming the 28,000-mark after 10 weeks today, the benchmark BSE Sensex surged by 240 points on across-the-board buying after the government promised capital support to PSU banks amid positive macroeconomic data.
Besides, a firming trend in global markets, after Greek PM Alexis Tsipras was reportedly prepared to accept creditors’ demands for a bailout buoyed trading sentiments here, equity brokers said.
The 30-share index, which had gained 135 points in the previous session, recaptured the 28,000-mark by jumping 240.04 points or 0.86 per cent to close at 28,020.87, its highest close since April 17. Intra-day, it hit the session’s high of 28,099.25 and a low of 27,799.91.
The 50-share NSE Nifty also regained the 8,400-mark by climbing 84.55 points or 1.01 per cent to 8,453.05.
Sentiment got a lift after output of eight infrastructure sectors expanded 4.4 per cent in May, the highest growth rate in the past six months, they said.
Global cues were also positive on signs that Greece was ready to accept creditors’ proposals to end a standoff over a bailout, influenced sentiment.
"Greece has been put on the back burner. The government's focus to end improper lending is also helping," said G. Chokkalingam, founder of Equinomics, a Mumbai-based research and fund advisory firm.
Banking stocks gained after government said it is examining the funds requirement of public sector banks over three years and promised required capital support as part of a comprehensive package to strengthen them.
State-run SBI surged 1.83 per cent, while private lenders such as ICICI Bank gained 1.35 per cent, Axis Bank jumped 3.60 per cent on BSE.
BHEL topped the list by climbing 3.67 per cent on the index. Other gainers included, Cipla, Tata Motors, TCS, L&T, Wipro, ONGC, Infosys, Vedanta, Bharti Airtel, Hindalco, Coal India, M&M, Tata Steel, RIL and Dr Reddy’s, among others.
Sectorwise, capital goods index rose the most by gaining 1.69 per cent, followed by power 1.64 per cent, bankex 1.63 per cent, PSU 1.53 per cent, realty 1.48 per cent, IT 1.48 per cent and infrastructure 1.47 per cent.
In line with overall trend, BSE small—cap rose 1.45 per cent, while mid—cap gained 1.30 per cent.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.