Sensex surges 283 pts; reclaims 27k-mark on Fed dovish stance

Ignoring sluggish global cues, the benchmark BSE Sensex today regained the 27,000 level by surging 283 points on Federal Reserve's dovish stance on interest rate, above-normal progress in monsoon and strengthening of rupee.

The BSE barometer has gone up by 745 points in the last five sessions and now stands at over two-week high levels.

In a two-day monetary policy meet concluded yesterday, the US Federal Reserve Chairwoman Janet Yellen left key interest rates unchanged near zero.

"...although policy will be data-dependent, economic conditions are currently anticipated to evolve in a manner that will warrant only gradual increases in the target federal funds rate," Yellen said.

Above-normal progress in monsoon, rise in the rupee by 34 paise to 63.78 in late afternoon deals supported the rally.

"Indices continue to stay cheerful with the Fed meet outcome of keeping interest rate unchanged. Strengthening of rupee to a three-month strong level cheered the sentiment," said Gaurav Jain, Director of Hem Securities.

The 30-share BSE gauge opened on a strong footing and picked up momentum on sustained across-the-board buying to reclaim the 27,000-mark and touched high of 27,175.39.

The index finally settled 283.17 points higher or 1.06 per cent at 27,115.83.
The 50-share NSE Nifty index recaptured the 8,100-mark by rising 83.05 points or 1.03 per cent to close at 8,174.60.

Among Sensex gainers, RIL topped the list by climbing over 5 per cent on continued optimism about the company's plans to start 4G phone services later this year.

Gains were also aided by oil&gas, consumer durable, healthcare, auto, capital goods and banking stocks.

Globally, Asian stocks closed mixed with downward bias on receding hopes of a deal between Greece and its creditors at a summit late in the global day today. European markets too showed feeble trend in mid-session deals.

Key indices from China, Hong Kong, Japan and Singapore ended weak, while from South Korea and Taiwan concluded with gains. Chinese Shanghai Composite Index plunged 3.67 per cent.

In Europe, key index from France was down by 1.37 per cent, Germany by 1.36 per cent and the UK by 0.73 per cent.

Back home, foreign investors pulled out Rs 940.91 crore yesterday, as per provisional data.

Overall, 22 out of 30-share Sensex scrips closed with gains, while Tata Power ended steady today.

Major gainers were Tata Motors 2.71 per cent, ONGC 2.16 per cent, Maruti Suzuki 1.82 per cent, Dr Reddy's 1.49 per cent, Sun Pharma 1.40 per cent, Hindalco 1.31 per cent, Bharti Airtel 1.29 per cent, HDFC Bank 1.28 per cent, SBI 1.16 per cent and HDFC 0.85 per cent.

The market breadth remained favourable as 1,548 stocks ended in the green, 1,188 closed in the red and 110 ruled steady.

Total turnover declined to Rs 2,999 crore from Rs 3,119.62 crore yesterday.