Sensex rallies 518 points; Nifty records biggest single-day gain in 7 months

Our Bureau |Agencies | | Updated on: Dec 06, 2021

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The benchmark BSE Sensex reclaimed the 28,000-mark and the NSE Nifty recorded its biggest single-day gain in seven months on across-the-board gains after WPI inflation fell for July, raising hopes of a rate cut by the RBI, and on hopes that the rupee would not decline as steeply as feared.

The 30-share BSE index Sensex surged 517.78 points or 1.88 per cent to 28,067.31 and the 50-share NSE index jumped 162.7 points or 1.95 per cent to 8,518.55.

The July WPI inflation has cheered the stock markets and strengthened the expectations that the Reserve Bank of India could go in for an out-of-turn rate cut.

The Wholesale Price Index (WPI) inflation contracted further in July 2015 to (-) 4.05 per cent from (-) 2.4 per cent in June.

The Consumer Price Index (CPI) -- which is the main index focused by the central bank -- too had fallen sharply in July , raising expectations that the RBI could move even before September 29, which was the next date of monetary policy review.

Among BSE sectoral indices, realty index was the star-performer and was up 7.6 per cent, followed by banking 3.05 per cent, auto 2.4 per cent and infrastructure 2.19 per cent.

Top five Sensex gainers were VEDL (+3.73%), ICICI Bank (+3.58%), SBIN (+3.49%), Reliance (+3.44%) and HDFC (+3.4%), while the only two losers were Dr Reddy's (-0.75%) and Infosys (-0.68%).

Equity brokers said better-than-expected positive macro data fuelling hopes of a policy rate reduction triggered buying by participants, helping key indices regain their crucial levels.

Besides, falling global crude oil prices, which slid to its lowest level in over six years, lifted the sentiment, they said.

European stocks edged higher on Friday, buoyed by auto and travel stocks, although they remained on course for a weekly decline after China moved to weaken its currency.

The pan-European FTSEurofirst 300 was up 0.3 per cent at 1535.18 points by 0747 GMT, with carmakers continuing to rebound, up 1 per cent.

Asian shares were mostly higher on Friday, but still on track for a steep weekly loss in the wake of China’s surprise currency devaluation earlier in the week.

MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.06 per cent, poised to end the week down 2.6 per cent.

Japan’s Nikkei stock index fell 0.1 per cent, and was down about 0.8 per cent for the week.

US stocks finished flat on Thursday as a drop in energy shares offset a rebound in retail sales and stronger-than-expected Cisco results.

Published on August 14, 2015
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