Sensex soars 287 points, brings up best weekly show in 3 months
Market kept its strong run going for the fourth straight session as the Sensex ended about 287 points higher after investors created fresh long positions in the new June derivative series amid earnings traction and continued foreign inflows.
Mumbai: Market kept its strong run going for the fourth straight session as the Sensex ended about 287 points higher after investors created fresh long positions in the new June derivative series amid earnings traction and continued foreign inflows.
The NSE Nifty in the process reclaimed the 8,100 level.
A higher opening in Europe and a firm trend in Asia acted as a catalyst.
For the week, the Sensex climbed 1,351.70 points, or 5.34 percent, while NSE Nifty surged 406.95 points, or 5.25 percent. For both the indices, the jump is their biggest weekly gain since March 4.
The June series derivative contracts was off to a better start, which added to the confidence level. Refinery, healthcare and realty stocks hogged the limelight.
The Sensex opened strong and closed at 26,653.60, a gain of 286.92 points, or 1.09 percent. The barometer ended last above this level at 26,656.83 on October 30 last year.
The index had gained 1,136.32 points in the previous three sessions.
At the close, the 50-share NSE Nifty was at 8,156.65, up 87 points, or 1.08 percent.
Brokers said fresh positions built up by participants, including foreign funds following beginning of the June series in the derivatives segment, helped trading sentiment improve.
Sustained buying by foreign as well as domestic institutional investors supported the ongoing bull run.
BPCL added to the cheer, which posted strong earnings for the March quarter. Its shares surged 9.12 percent as the state-run oil marketing company beat Q4 earnings estimate and announced a 1:1 bonus share issue.
Other oil companies such as HPCL, IOC and RIL were in a sweet spot backed up by hopes of favourable corporate reports.
Globally, Asian markets ended higher and a better opening in Europe on growing optimism that the global economy can withstand higher US borrowing costs made investors more nimble-footed.
As many as 23 scrips out of the 30-share Sensex pack advanced.
SBI emerged as the top gainer by rising 6.42 percent, followed by Sun Pharma 5.83 (percent) after the company yesterday said the umbrella pact and transaction agreements signed with Daiichi Sankyo and its overseas subsidiaries have been terminated due to divestment of Ranbaxy by the Japanese firm.
Other major gainers were Adani Ports (3.65 percent), RIL (2.75 percent), Bajaj Auto (2.49 percent) and HDFC (2.43 percent).
The BSE oil and gas index gained the most by surging 2.66 percent, followed by healthcare 2.42 percent, PSU 1.65 percent, realty 1.51 percent and banking 1.15 percent.
Mid-cap and small-cap too rose 1.39 percent and 0.57 percent, respectively, on increased buying by retail investors.
Meanwhile, foreign portfolio investors (FPIs) bought shares worth a net Rs 581.29 crore yesterday, as per provisional data.