Centre’s pro-foreign investment move ups Sensex by 248 points

The market benchmark Sensex on Thursday surged 248 points to 28,446.12 — its three-month closing high — mainly led by banking stocks as the government's move to simplify FDI rules was seen as a major boost for the private sector banks to raise fresh capital. Easing of foreign direct investment, positive global cues coupled with good foreign fund inflows also pushed up Nifty to its three-month closing high at 8,608.05.

"Markets continue their northward journey. Government's approval on composite FDI cap resulting in more capital flowing into the system lifted the sentiment," said Gaurav Jain, Director at Hem Securities.  Axis Bank rose 4.14 per cent, followed by Kotak Bank 4.03 per cent, Yes Bank 3.11 per cent, HDFC Bank 1.54 per cent, SBI 1.29 per cent and ICICI Bank 0.83 per cent. On the day, the 30-share BSE Sensex opened higher at 28,259.70 and firmed up further to 28,478.43 before ending at three-month closing high of 28,446.12, disclosing a sharp gain of 247.83 points or 0.88 per cent. The index had last ended at 28,666.04 on April 16.

On similar lines, NSE Nifty rose 84.25 points or 0.99 per cent to close at three-month high at 8,608.05. It had also last ended at 8,706.70 on April 16. "Further, Greece lawmakers also has passed the austerity laws aimed at paving the way for a European Union-backed bailout boosted the investors confidence," added Jain. 

In overseas markets, European stocks were trading higher in their afternoon trade on Greece's Parliament nod. Asian stocks too ended higher. Meanwhile, foreign investors bought shares worth Rs 407.69 crore yesterday as per provisional data.

"Continued improvement in FII inflows post the reduction in global risk is intensifying India?s outperformance. The healthy interest of FIIs tells us that India is in a healthy spot," said Vinod Nair, Head of Fundamental Research at Geojit BNP Paribas Financial Services.  Globally, key indices in Europe like France, the UK and Germany were up in the range 0.51 per cent to 1.58 per cent.

Key benchmark indices in Asian like China, Hong Kong, Singapore, Japan and South Korea rose 0.43 per cent to 0.72 per cent, while Taiwan's market fell 0.13 per cent. In domestic market, 23 scrips out of the 30-share Sensex pack ended higher while only seven finished lower.

Pramit Brahmbhatt, Veracity Group CEO said: "Indices gained almost half a per cent with the help of the blue-chip firms, which continued to gain. Now the investors are waiting for the series of US data due for the day which will decide the further movement of market in coming days, he added. Major gainers on BSE included, BHEL (2.36 pc), HDFC (1.63 pc), Cipla (1.43 pc), Dr Reddy's (1.34 pc), ITC (1.24 pc), RIL (1.21 pc), NTPC (1.20 pc) and Hindalco (1.08 pc). Vedanta fell by 1.17 per cent and M&M by 0.91 per cent. 

Among BSE sectoral indices, consumer durables rose by 2.06 per cent, followed by bankex 1.91 per cent, power 1.17 per cent, healthcare 1.06 per cent and oil&gas 2 per cent. The market breadth continued to remain strong as 1,569 stocks ended higher, 1,244 finished lower and 137 ruled steady. Total turnover moved up to Rs 2,777.43 crore from Rs 2,750.14 crore on Wednesday.