The benchmark BSE Sensex rose for the second straight day on Monday by surging 363 points to close at over three-week high of 27,687.30 after government reported fiscal deficit at 4.0 per cent of GDP, while continuing rate cut hopes amid forecast of timely monsoon helped too.
The sentiment was also boosted by value-buying in recently beaten down blue-chip stocks.
Shares of fuel retailers, HPCL, BPCL and IOC, surging up to 4 per cent after petrol price was hiked over the weekend contributed to 30-share barometer’s gains.
Bettering its own financial targets, the government yesterday said that it has contained the fiscal deficit at 4 per cent of GDP for 2014-15 at Rs 5,01,880 crore.
“The sentiments were on optimistic note in response to the government statement that it has contained the fiscal deficit at 4 percent of GDP for 2014-15, bettering its own financial targets,” said Jayant Manglik, President-retail distribution, at Religare Securities.
The Sensex began on a strong footing at 27,416.97 and continued to rise to hit a high of 27,725.97 before settling 363.30 points or 1.33 per cent higher at 27,687.30.
This is the best closing since April 23 when Sensex had closed at 27,735.02.
The gauge has now gained 481.24 points in two sessions.
The broad-based NSE Nifty regained the 8,300-level by surging 111.30 points or 1.35 per cent to close at 8,373.65.
It shuttled between 8384.60 and 8,271.95 intra-day.
Equity brokers said sentiments got bolstered after a forecast of a timely monsoon and expectations of a rate cut by the Reserve bank at its policy meet early next month following cooling inflation and slowing industrial growth.
In tandem with overall trends, the BSE small-cap index rose 0.97 per cent, while mid-cap edged up by 0.98 per cent.
Besides refinery, pharma, FMCG, capital goods, power, banking, IT and teck shares also were in demand and notched handsome gains.
Among Asian markets, Japan, South Korea and Taiwan ended with gains, while China, Hong Kong and Singapore finished in the red.
European markets, however, were trading firm in their late morning deals on the back of robust corporate earnings.
Key indices from France was up by 0.18 per cent, German by 0.75 per cent and the UK by 0.36 per cent.
Back home, Foreign Portfolio Investors (FPIs) sold shares worth Rs 38.31 crore last Friday, as per provisional data.
“Indices added over half a per cent during the day as the blue-chip firms traded higher on value-buying with well supported from strong Asian market,” said Jignesh Chaudhary, Head Of Research at Veracity Broking Services.
Out of 30 Sensex stocks, 27 settled the day in the green.
Major gainers on the index were Dr Reddy’s (3.48 per cent), Gail (3.45 pc), Tata Power (3.08 pc), HDFC (2.34 pc), HDFC Bank (1.92 pc), RIL (1.89 pc), ITC (1.84 pc), Bajaj Auto (1.84 pc), Infosys (1.63 pc), Bhel (1.54 pc), Bharti Airtel (1.41 pc) and Hindalco (1.35 pc).
Among the BSE indices, consumer durables rose by 2.16 per cent, followed by oil&gas 2.09 per cent, healthcare 1.54 per cent, FMCG 1.37 per cent, consumer goods 1.30 per cent, bankex 1.21 per cent, teck 1.18 per cent and power 1.08 per cent.
Total market breadth remained positive as 1,675 stocks ended higher, while 1,046 stocks finished lower and 123 ruled steady.
The total turnover rose to Rs 3,193.52 crore from Rs 2,534.77 crore on Friday.