Markets at 7-Month High as Rally Extends to Third Straight Day
Dalal Street on firm footing after a stellar rally on Thursday.
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Domestic equity markets opened with solid gains for the third straight day. After a 500-point rally on Thursday, the Bombay Stock Exchange’s Sensex gained over 150 points to over 26,500. The NSE’s Nifty climbed 50 points to reclaim 8,100.
Global cues were supportive – Asian stocks surged after strong US economic data and oil prices slipped after hitting a 7-month high.
Sectorally, pharma, oil & gas and banks led the gains.
Sun Pharma was the biggest gainer on the Sensex, followed by Lupin, SBI, Reliance, Cipla and ICICI Bank. ITC, Tata Motors, NTPC traded in the red. L&T slipped after Thursday’s stellar rally.
Rupee Continue Winning Streak
Staying with its rising streak for the third day, the rupee appreciated 13 paise to 67.04 against the dollar in early trade on increased selling of the US currency by exporters and banks amid higher foreign inflows.
Forex dealers said a weakening dollar against other currencies overseas and a higher opening in the domestic equity market kept the rupee going. On Thursday, the rupee had gained 16 paise to 67.17 on sustained selling of the American currency amid a continued rally in domestic equities.
Supportive Global Framework
Asian stocks pulled ahead after US data continued to put the economy in a positive light, while the dollar was on the defensive against major peers.
MSCI’s broadest index of Asia-Pacific shares outside Japan gained 0.2 percent to a two-week high. The index was on track to rise 2.2 percent this week.
Japan’s Nikkei nudged up 0.4 percent, buoyed by prospects of Tokyo delaying a sales tax hike, helping to extend gains for the week to 1.5 percent.
China’s CSI300 and Shanghai Composite indices both slipped by 0.1 percent, set for declines of 0.6 percent and 0.3 percent respectively for the week.
The Hong Kong Hang Seng index was also down 0.3 percent, but remains on track for a jump of 2.4 percent for the week.
The Dow Jones Industrial Average inched down 0.1 percent and the S&P 500 ended flat overnight after rising strongly for two days as advancing utilities offset declines in materials, banks and other cyclical industries.
(With agency inputs)
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