Mumbai | The BSE benchmark Sensex reclaimed the 38,000-mark by surging over 300 points in opening trade Friday on heavy buying by domestic institutional investors as the industrial production grew at 6.6 per cent in July and retail inflation cooled to a 10-month low.
The 30-share barometer pushed higher by 318.85 points, or 0.85 percent, to 38,036.81. The gauge had risen 304.83 points in the previous session on Wednesday. Sectoral indices were green across the board, with metal, power, PSU, realty and oil & gas stocks posting sizeable gains of up to 1.66 percent.
The NSE index Nifty was trading above the 11,400-mark, up 84.90 points, or 0.75 percent, at 11,454.80.
Buying activity picked momentum after data released by Central Statistics Office (CSO) on Wednesday showed that industrial production grew at 6.6 percent in July, while retail inflation cooled to a 10-month low of 3.69 percent in August.
The rupee’s recovery by 50 paise to 71.68 against the dollar in early trade on the government’s assurance that all steps would be taken to ensure the domestic currency does not depreciate to unreasonable levels also added to the momentum.
PowerGrid, emerged top gainer in the Sensex pack, rising 3 percent, followed by Yes Bank at 2.11 percent.
Other big gainers that lifted both the key indices were Maruti Suzuki, Sun Pharma, Vedanta, SBI, Adani Ports, IndusInd Bank, ONGC, NTPC, ICICI Bank, Coal India and Tata Steel.
However, stocks of software exporters such as Wipro, Infosys, and TCS were under pressure after the rupee continued its recovery against the dollar.
Domestic institutional investors (DIIs) remained net buyers, picking up shares worth a net of Rs 541.44 crore on Wednesday. However, foreign portfolio investors (FPIs) gave up shares worth a net of Rs 1,086.39 crore, provisional data showed. Stock exchanges remained closed Thursday on account of Ganesh Chaturthi.
Most other Asian markets too were in a better shape, tracking positive cues from Wall Street on optimism over China-US trade talks.
Hong Kong’s Hang Seng rose 0.79 percent, while Japan’s Nikkei was up 0.97 percent in their early deals. Shanghai Composite Index, however, was down 0.26 percent. The US Dow Jones Industrial Average had closed 0.57 percent higher on Thursday.
As an independent media platform, we do not take advertisements from governments and corporate houses. It is you, our readers, who have supported us on our journey to do honest and unbiased journalism. Please contribute, so that we can continue to do the same in future.
