MUMBAI: After lying low for a day, the S&P BSE Sensex continued with its upward journey and surged over 250 points today as institutional investors lapped up rate sensitive stocks on hopes of an interest rate cut by the Reserve Bank of India at its next meet.
"After a series of bad news on politics, growth and interest rate outlook, India has seen some relief from falling commodity prices (especially gold and oil). The downtrend in commodities is clearly good for the economy and eases the tail risks on the twin deficit to some extent," said a Bank of America Merrill Lynch report.
A falling commodity price environment could trigger much faster RBI rate cuts than consensus is currently building in due to reasons such as lower inflation due to lower global commodity prices, twin deficit looking better and change in the RBI Governor in September, the report says.
The 30-share index ended at 18,986.34, up 255.18 points or 1.36 per cent. It touched a high of 19,058.80 and a low of 18,691.61 in trade today.
The Nifty closed at 5,774.75, up 86.05 points or 1.51 per cent. It touched a high of 5,794.35 and a low of 5,681.85 in trade today.
The BSE Midcap was 0.75 per cent higher, while the BSE Smallcap index was up 0.62 per cent.
Among the sectoral indices, the BSE Capital Goods Index was up 2.74 per cent, the BSE Bankex was 2.50 per cent higher, the BSE Auto Index moved up 2.25 per cent and the BSE Realty Index gained 1.61 per cent.
The rise was led by rate-sensitive stocks which surged after India's 10-year bond yields fell to 7.76 per cent, the lowest since July 28, 2010, after the government said exports had hit $300 billion for the fiscal year ended March.
The BSE IT Index was down 0.48 per cent and the BSE Metal Index was 0.13 per cent lower.
BhartiBSE 4.65 % AirtelBSE 4.65 % (4.65 per cent), Tata MotorsBSE 3.98 % (3.98 per cent), Larsen & Toubro (3.61 percent), HDFCBSE 3.34 % (3.34 per cent) and GAILBSE 3.20 % (3.11 per cent) were among the top Sensex gainers.
WiproBSE -1.68 % (1.68 per cent), TCSBSE -0.58 % (0.58 per cent), Sun PharmaBSE -0.04 % (0.27 per cent), Dr Reddy's Laboratories (0.02 per cent) were the only index losers.
The market breadth was positive on the BSE with 1,316 gainers against 1,050 losers
ABDUL WAHEED
PGDM 2nd SEM.
IIMT COLLEGE OF MANAGEMENT
"After a series of bad news on politics, growth and interest rate outlook, India has seen some relief from falling commodity prices (especially gold and oil). The downtrend in commodities is clearly good for the economy and eases the tail risks on the twin deficit to some extent," said a Bank of America Merrill Lynch report.
A falling commodity price environment could trigger much faster RBI rate cuts than consensus is currently building in due to reasons such as lower inflation due to lower global commodity prices, twin deficit looking better and change in the RBI Governor in September, the report says.
The 30-share index ended at 18,986.34, up 255.18 points or 1.36 per cent. It touched a high of 19,058.80 and a low of 18,691.61 in trade today.
The Nifty closed at 5,774.75, up 86.05 points or 1.51 per cent. It touched a high of 5,794.35 and a low of 5,681.85 in trade today.
The BSE Midcap was 0.75 per cent higher, while the BSE Smallcap index was up 0.62 per cent.
Among the sectoral indices, the BSE Capital Goods Index was up 2.74 per cent, the BSE Bankex was 2.50 per cent higher, the BSE Auto Index moved up 2.25 per cent and the BSE Realty Index gained 1.61 per cent.
The rise was led by rate-sensitive stocks which surged after India's 10-year bond yields fell to 7.76 per cent, the lowest since July 28, 2010, after the government said exports had hit $300 billion for the fiscal year ended March.
The BSE IT Index was down 0.48 per cent and the BSE Metal Index was 0.13 per cent lower.
BhartiBSE 4.65 % AirtelBSE 4.65 % (4.65 per cent), Tata MotorsBSE 3.98 % (3.98 per cent), Larsen & Toubro (3.61 percent), HDFCBSE 3.34 % (3.34 per cent) and GAILBSE 3.20 % (3.11 per cent) were among the top Sensex gainers.
WiproBSE -1.68 % (1.68 per cent), TCSBSE -0.58 % (0.58 per cent), Sun PharmaBSE -0.04 % (0.27 per cent), Dr Reddy's Laboratories (0.02 per cent) were the only index losers.
The market breadth was positive on the BSE with 1,316 gainers against 1,050 losers
ABDUL WAHEED
PGDM 2nd SEM.
IIMT COLLEGE OF MANAGEMENT
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