Oil-fuelled global rally buoys Sensex for 2nd day

The NSE 50-share also gained 83.30 points or 1.17 percent to close at 7,191.75 after between 7,215.10 and 7,127.85.  

Oil-fuelled global rally buoys Sensex for 2nd day

Mumbai: Domestic equities surged in line with its global peers Thursday, boosted by a recovery in crude oil prices, while across-the-board buying led by IT, banks and healthcare stocks also helped the market benchmark Sensex surge 267.35 points to hit a one-week high of 23,649.22.

Buying picked up here after Asian and European shares continued their winning momentum as crude oil tested USD 35 a barrel in international markets after key producer Iran sided with Saudi Arabia and Russia on production freeze.

US Federal Reserve hinting at softer stance in its January policy meet also had its bearing.

"The market has seen a positive momentum led by the FOMC's statement that they are unlikely to go ahead with four rate hikes this year due to weak global economic condition," said Vinod Nair, Head-Fundamental Research at Geojit BNP Paribas.

Meanwhile, Moody's Investors Service said Indian economy will grow at 7.5 percent in 2016 and 2017 as it is relatively less exposed to external headwinds, like China slowdown, and will benefit from lower commodity prices.

The BSE Sensex opened gap-up at 23,536.47 and hovered in a range of 23,735.35 to 23,448.21 before settling at 23,649.22, showing a gain of 267.35 points or 1.14 percent. The gauge had gained 189.90 points yesterday.

The NSE 50-share also gained 83.30 points or 1.17 percent to close at 7,191.75 after between 7,215.10 and 7,127.85.

Dr Reddy's Laboratories emerged as the star performer and closed up by 4.52 percent at Rs 3,094.95 after its board approved a share buyback around 44.85 lakh shares for Rs 1,569.4 crore.

Shares of software security solutions provider Quick Heal Technologies made a weak stock market debut today, plunging nearly 21 percent, over the issue price of Rs 321.

Monsanto remained under pressure and slipped 3 percent as CCI said is it probing the company whether it abused dominant position as a supplier of genetically modified cotton seeds.

Asian stocks ended higher with Hong Kong, Japan, South, Singapore, Korea and Taiwan rising 1.22-2.32 percent. However, China's Shanghai index settled 0.16 percent lower.

Key indexes in Europe, like France CAC and Germany's DAX firmed up by 0.24 percent and 0.47 percent while the UK's FTSE was quoted lower by 0.46 percent. 

Back home, mid-cap and small-cap indexes ended 0.63 percent and 0.59 percent higher, respectively. Overall, out of the 30-share Sensex pack, 20 scrips gained.

Major gainers were Dr Reddy's (4.52 percent), ONGC (4.50 percent), Hero MotoCorp (3.85 percent), ICICI Bank (2.83 percent), Lupin (2.68 percent), Wipro (2.60 percent), Infosys (2.49 percent), L&T (2.42 percent), Bajaj Auto (2.06 percent), HUL (1.77 percent) and ITC (1.77 percent).

However, Maruti Suzuki fell by 2.53 percent followed by Asian Paints 2.09 percent, BHEL (1.84 percent), Axis Bank (1.39 percent), RIL (1.19 percent) and Adani Ports (1.11 percent).

Among BSE sectoral and industry indices, IT rose by 1.94 percent, followed by teck 1.90 percent, healthcare (1.78 percent), capital goods (1.59 percent), FMCG (1.52 percent), oil&gas (1.22 percent), metal (1.12 percent) and bankex (1.10 percent).

The market breadth turned positive as 1,418 shares ended higher, 1,110 closed lower while 155 ruled steady. The total turnover rose to Rs 3,535.11 crore from Rs 2,352.52 crore yesterday.