S&P hope fuels bull run at Dalal street

MUMBAI: The equity markets staged a spectacular rally on Tuesday posting their biggest gain in nearly 10 weeks ahead of the release of India’s June industrial production (IIP) data and July consumer price data. There was also a buzz in the market that the global rating agency Standard & Poor (S&P) is likely to revise upwards India’s sovereign ratings.

Market participants said that investors were seen buying aggressively towards the fag end of the trading session on expectation that the IIP numbers to be released post market hours could surprise on the upside. The market is also anticipating a further moderation in consumer price inflation data.

After opening the day on a positive note, the Sensex climbed 361.53 points or 1.42 per cent to end the trading session at 25,880.77 while the Nifty closed the day at 7,727.05, gaining 101.10 points or 1.33 per cent.

“The IIP data is expected to come positive, which can even surprise on the higher side.

Additionally, there were strong rumours about S&P revising upwards India’s ratings, which triggered strong buying during the second half of the trading session,” said Uday Narayan Dubey, vice-president, institutional desk, R.K.Global.  

After remaining net sellers on Monday, the foreign portfolio investors (FPI) bought shares worth Rs 370.83 crore on Tuesday, the provisional data from the stock exchanges showed.