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Sensex rebounds by 351 pts on price data

Rebounding from two-month lows, the S&P Bombay Stock Exchange, Sensex surged by nearly 351 points to end at 19,177.93 on Friday, as slowing wholesale inflation and strengthening rupee rekindled hopes of rate cut by RBI next Monday.

Breaking a three-day losing run, investors were richer by over Rs 90,000 crore as 13 sectoral indices finished higher with over 1,400 stocks logging gains. Finance Minister P Chidambaram’s comment that government would announce steps soon to boost investment and growth, also supported markets.

The Sensex resumed higher at 18,959.83 tracking strength in Wall Street on Thursday and moved up further to a high of 19,213.10 as rate cut hopes were revived after WPI inflation fell to over three-and-half-year low to 4.7 per cent in May. It ended at 19,177.93, a gain of 350.77 points or 1.86 per cent. The index had lost 613.91 points in past three days.
‘Supportive global markets, appreciation in rupee and supportive comments from the FM helped improve the sentiment. WPI inflation also came in below expectations, improving sentiments ahead of the RBI policy meeting on Monday,’ said Dipen Shah, Head of PCG Research, Kotak Securities.

Lower inflation on account of declining prices of manufactured items and recent weak IIP data boosted hopes of monetary action
by RBI on June 17, traders said. Rupee was trading stronger at 57.5 levels against US dollar on good inflows and dollar sales.
In the 30-share Sensex, 26 stocks ended higher led by Hindalco, Tata Motors and Maruti. RIL surged by 3.15 per cent on hopes of higher reserves. Infosys inched up after the IT major hiked employee wages. ITC also shot up by 1.41 per cent. Tata Motors rose 4.9 per cent after JLR posted robust sales.

The NSE 50-share Nifty rose by 109.30 points, or 1.92 per cent, to finish at 5,808.40. Similarly, MCX-SX flagship index, SX40, ended 207.09 points higher at 11,386.45. Also, overall gains in all the major global markets, including Nikkei, Hang Seng and Euro STOXX boosted the trading sentiment here.
Asian stocks ended higher after US economic data surpassed expectations and on bets that the Federal Reserve will signal plans to keep record-low interest rates. Key indices in China, Hong Kong, Japan, South Korea and Singapore rose by 0.35 per cent to 1.94 per cent while Taiwan’s Weighted fell. European markets were also trading up as indices in France, Germany and the UK moved up by 0.36-0.54 per cent.
Turning back to the local market, 26 scrips out of
the 30-share BSE Sensex ended higher while others finished lower.  
Agencies

Agencies

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