Sensex rises for second day; investors remain bullish

 The stock markets remained bullish for a second consecutive day on Thursday with the benchmark Sensex gaining 186 points as investors’ rollover of Nifty positions to June created a high level of volatility.
The markets, however, consolidated further with a downward correction as domestic operators squared up positions on the last day of the derivatives series for May. The Bombay Stock Exchange 30-share barometer ended the day at 14,296.01, netting a rise of 186.37 points or 1.32 per cent over its previous close. The National Stock Exchange’s 50-share Nifty also jumped 61.05 points or 1.43 per cent to close at 4,337.10 from its last close.

Moody’s warning

The Sensex lost gains from its day’s high of 14,377.23 at the fag end of the session as global rating agency Moody’s warned that India’s financial strength has weakened due to its “poor debt affordability”. The rating agency said that the predictability and credibility of the country’s fiscal policy have deteriorated.
Unicon Financial CEO G Nagpal said: “The rally is mostly liquidity-driven, led by institutional investors purchasing. With the market on a gaining spree in May, it is conventional that on the last day it would remain positive.” Brokers said the substantial rollover of Nifty positions to the June series indicated a bullish trend.
The BSE bellwether had risen a whopping 520 points yesterday after Finance Minister Pranab Mukherjee assured cheaper credit to industry. Inflation was steady at 0.61 per cent for the week ended May 16.
India’s largest drug maker Ranbaxy Laboratories gained 4.24 per cent, Sterlite Ind 3.59 per cent, Bharti Airtel 3.42 per cent, NTPC 2.80 per cent, Tata Steel 2.77 per cent, ICICI Bank 2.67 per cent, Maruti Suzuki 2.54 per cent, TCS 2.29 per cent and Mahindra & Mahindra 2.16 per cent. Tata Motors, however, fell 3.17 per cent, Grasim 2.8 per cent, Wipro 2.68 per cent, Reliance Comm 2.22 per cent and Reliance Infra 1.34 pc.

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