Stock Markets Hit Two-week High on Last Hour Buying

Mumbai: The last hour buying in capital goods, IT, banks, real estate and other sectors helped the stock markets to recover sharply from day’s low to close around one per cent higher and at a two week high level.

The Sensex gained 676.69 points or 0.93 per cent to close at 73,663.72 while Nifty-50 closed at 22,403.85 up 203.3 points or 0.92 per cent.

The markets remained volatile despite positive global cues, on political uncertainty looming due to General elections.

US CPI data released on Wednesday showed inflation easing and the US market rallied overnight leading to a positive start in the domestic market as the Sensex opened 351 points higher at 73,338.24 but thereafter fell sharply to day’s low of 72,529.97 down by 457 points.

However, the gains also extended to the broader market as BSE mid-cap index gained 1.07 per cent and BSE small-cap index gained 0.85 per cent.

Foreign portfolio investors selling also came down to just Rs.776.49 crore while domestic institutions buyers of equities worth Rs.2,127.81 crore.

Almost all sectoral indices on BSE closed higher barring BSE power (up 0.09) per cent and oil & gas (up 0.10 per cent). The top gainers included BSE capital goods (2.05 per cent), IT (1.55 per cent), realty (1.59 per cent), consumer durable (1.90 per cent).

IMD announced the timely arrival of monsoon in Kerala which seems to have boosted market sentiments as the weather agency also in its latest forecast talked about a wet spell with isolated rainfall over south peninsular India. “This year, the Southwest monsoon is likely to set in over Kerala on May 31 with a model error of plus or minus four days,” IMD said.

“Global markets rallied on the hope of a rate cut after US inflation data (3.4 per cent y-o-y) came in at 6 months low. Positive global cues and short covering on Nifty weekly expiry led to a rebound in domestic equities. Overall, we expect markets to witness a gradual recovery,” Siddhartha Khemka, head - Retail Research, Motilal Oswal Financial Services, said.

( Source : Deccan Chronicle )
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