Markets gain for 2nd day: Sensex jumps 148 points

Markets gain for 2nd day: Sensex jumps 148 points

Markets gain for 2nd day: Sensex jumps 148 points

Key benchmark indices gained for the second day in a row as Asian and European stocks rose on speculation that the Federal Reserve will hold off on tapering its monetary stimulus programme after a monetary policy review this week.

D-Street analysts viewed that markets on the first day of the week reversed early losses shrugging off RBI’s neutral stance on key policy rates to end near the day's high led by gains in index heavyweights and Mahindra & Mahindra.

Consequently, both the premium indices of BSE and NSE on Monday settled at their highest level in a week. The market breadth, indicating the overall health of the market, was positive.

For starters, Reliance Industries (RIL) extended Friday’s gains in the day’s trade triggered by partner Niko Resources providing clarity on the companies’ recent gas and condensate discovery at key KG-D6 block in India, while Bharti Airtel advanced after it said that it has completed the allotment of 19.98 crore new shares, equivalent of 5 per cent equity stake in the company to Qatar Foundation Endowment in one of the largest private equity (PE) transactions in India.

The popular Sensex at BSE jumped 147.94 points or 0.77 per cent to 19,325.87, its highest closing level from June 10, 2013. The index rose 166.35 points at the day’s high in late trade and fell 93.25 points at the day's low in mid-morning trade.

The 50-unit CNX Nifty at NSE was up 41.65 points or 0.72 per cent to 5,850.05, its highest closing level since June 10, 2013. The index hit a high of 5,854.90 and  a low of 5,770.25 in intraday trade.

From broader markets, the BSE Mid-Cap index rose 0.33 per cent to close at 6,201.25 and the BSE Small-Cap index gained 0.39 to 5, 795.22 per cent. Both these indices underperformed the Sensex.

Meanwhile during the day abroad, European stock markets rose on tracking Asia stocks higher and with investors speculating whether the US Federal Reserve will make any changes to its monetary policy when it meets later this week. So, key benchmark indices in UK, France and Germany were up by 0.92 to 1.82 per cent.

Asian stocks rose for a second day as investors await this week’s Federal Reserve meeting even as key indices in Hong Kong, Indonesia, Japan, Taiwan and Singapore rose by 0.29 to 2.73 per cent while indices in China and South Korea shed by 0.27 to 0.32 per cent. Trading in US index futures indicated that the Dow could gain 125 points at the opening bell on June 17, 2013.