Sensex begins new FY on high of 287 points

Sensex begins new FY on high of 287 points

Commencing the new fiscal on a buoyant note, the benchmark Sensex soared around 287 points to close at 33,255, following a strong rally in auto, pharma and banking counters.

The robust auto sales data triggered a rally in automobile stocks, led by Tata Motors, Hero MotoCorp, Bajaj Auto, Maruti Suzuki and Mahindra and Mahindra - rising up to 3.5%.

Shares of banks too witnessed a keen interest from participants, with Kotak Bank, HDFC Bank, Indusind Bank and YES Bank leading the charge. However, ICICI Bank shares plummeted nearly 6%, hit by controversy over alleged conflict of interest involving the bank and Videocon Group.

The Indian bourses reopened on Monday, after a long weekend owing to holidays for Mahavir Jayanti and Good Friday last Thursday and Friday, respectively. A positive start in the April derivative series also had an impact on investor sentiment, as they indulged in creating fresh positions.

"Markets rallied on account of stellar auto sales and value-buying of pharma stocks, influenced by USFDA approvals. US stock futures dropped and other Asian markets reversed an early advance, where volume was low as many markets remained closed. Back home, investors are focusing on the upcoming RBI policy, while consensus shows status quo on key rates due to declining yield and inflation," Geojit Financial Services Head (Research) Vinod Nair said.

However, other Asian markets showed subdued trends turned after initial firmness due to profit-taking in late trade, and any absence of cues from European markets that were closed for Easter.

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