Sensex gains 341 pts; on 2-week high amid pre-budget rally

Sensex gains 341 pts; on 2-week high amid pre-budget rally

Key benchmark indices edged higher on the last trading session of the month and the quarter as a decline in crude oil prices boosted market sentiment. They rose more than a per cent supported by banks, infrastructure and PSU oil & gas stocks.

The market breadth indicating the overall health of the market was strong with more than two gainers for every loser on BSE with all sectoral indices closed in green. BSE Power, Capital Goods, Infrastructure, Healthcare, Bank, Oil & Gas, Metal and Realty indices gained 1-3 percent.

Some bank stocks rallied the most this day amid reports that the government has decided to create a holding company structure for them before the Budget. So much so, India’s largest lenders State Bank of India and ICICI Bank climbed 1.9 per cent and 2.4 per cent respectively.

Among other PSU banks, Canara Bank (up 6.77 pc), Union Bank of India (up 6.18 pc), Bank of India (up 5.94 pc), Bank of Baroda (up 3.65 pc) and Punjab National Bank (up 4.13 pc) gained.

The popular BSE Sensex was up 313.86 points or 1.25 per cent to 25,413.78, its highest closing level since June 17, 2014. The index jumped 361.04 points at the day’s high of 25,460.96 in late trade, its highest level since 18 June 2014. The index rose 79.63 points at the day’s low of 25,179.55 in opening trade.

The 50-unit CNX Nifty at NSE was up 102.55 points or 1.37 per cent to 7,611.35, its highest closing level since 17 June 2014. The index hit a high of 7,623.65 in intraday trade -- its highest level since 18 June 2014 -- and a low of 7,531.60

Some experts said that the day’s surge in the market by itself may be deemed a pre-budget rally and if the bugdet (on July 10) by BJP government disappoints, then the market may drift lower. Shares of PSU OMCs gained as crude oil prices fell.

Scrips of ONGC and Oil India also gained, while Reliance Industries (RIL) edged higher in choppy trade, with the stock shrugging off reports that the Securities Appellate Tribunal (SAT) has upheld the Rs 11 crore penalty imposed on a unit of RIL by the Securities and Exchange Board of India (Sebi) for insider trading.

Giving a perspective on markets, Kotak Securities’ Shrikant Chouhan said: “The market opened on a flat note but quickly moved to 25500/7600 levels under the leadership of PSU banks, Capital Goods and Infra stocks. We are of the view that sustenance above 25300/7550 will lift the market beyond all time highest levels 25750/7700. In case if indices falls to given supports then certainly on can add long positions to the trading portfolio with a medium to long term view. Rupee stayed almost unchanged around 60.10 and ease at middle- east will help to appreciate in the near term.  It has resistance at 59.75 and support at 60.60. above 60.60 it may weaken to 61 levels quickly.”     

The popular BSE Sensex was up 313.86 points or 1.25 per cent to 25,413.78, its highest closing level since June 17, 2014. The index jumped 361.04 points at the day’s high of 25,460.96 in late trade, its highest level since 18 June 2014. The index rose 79.63 points at the day’s low of 25,179.55 in opening trade.

The 50-unit CNX Nifty at NSE was up 102.55 points or 1.37 per cent to 7,611.35, its highest closing level since 17 June 2014. The index hit a high of 7,623.65 in intraday trade -- its highest level since 18 June 2014 -- and a low of 7,531.60

From broader markets, the BSE Mid-Cap index was up 173.78 points or 1.89 per cent at 9,378.95 points, while the BSE Small-Cap index was up 180.90 points or 1.8 percent at 10,203.19. Both these indices outperformed the Sensex.

The market breadth indicating the overall health of the market was strong with 2,119 shares on BSE shares gained and 929 stocks fell, while a total of 104 scrips were unchanged. The total turnover on BSE amounted to Rs 3535 crore, which is lower than Rs 3361.27 crore on Friday last. On the global front this day, European stocks declined in volatile trade as investors awaited data on US home sales later in the global day. Key benchmark indices in UK, France and Germany were off 0.02 to 0.53 percent.

Asian stocks edged higher on Monday ahead of packed week of economic data that will test investor hopes for a pick up in the US and global economy. Key benchmark indices in Japan, Indonesia, China, South Korea and Taiwan were up 0.44 to 0.93 per cent, while key indices in Singapore and Hong Kong fell by 0.13 to 0.47 percent. Trading in US index futures indicated that the Dow could rise 11 points at the opening bell on Monday, June 30,2014.

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