Mumbai, May 28 (PTI) The benchmark BSE Sensex advanced over 100 points in early trade Tuesday amid positive domestic and global cues and unabated foreign fund inflow.
The 30-share index was trading 98.04 points, or 0.25 per cent, higher at 39,781.33. Similarly, the broader NSE Nifty rose 24.75 points, or 0.21 per cent, to 11,949.50.
The return of Narendra Modi as Prime Minister has pumped adrenaline into the stock market. As it became clear on Thursday that the BJP will get a clear majority, the benchmark indices created history – the Sensex crossed the 40,000 mark and Nifty rose above 12,000. Though both indices retraced from those levels due to profit booking, the formation of a stable government at the Centre is seen as good news.
In the previous session on Monday, the BSE gauge ended 248.57 points or 0.63 per cent higher at 39,683.29 — a new closing high for the index. While, the broader Nifty gained 80.65 points or 0.68 per cent to settle at 11,924.75 — a fresh closing peak for the NSE barometer.
Top Sensex gainers include Yes Bank, Vedanta, Coal India, Sun Pharma, Bajaj Auto, IndusInd Bank, PowerGrid, Tata Steel, Axis Bank, L&T, Reliance Industries and Tata Motors, rising up to 3.75 per cent.
While, HDFC, Hero MotoCorp, SBI, HUL, Kotak Bank, Bharti Airtel, Bajaj Finance, HCL Tech, ICICI Bank and ITC fell up to 1.02 per cent.
Market mood has been euphoric since the BJP-led National Democratic Alliance (NDA) won the general elections.
According to Sunil Sharma, Chief Investment Officer, Sanctum Wealth Management, this past week’s events reinforce a positive view on markets in the longer term.
“Given the large amount of groundwork already in place, we expect the next five years to surprise to the upside on earnings, once remaining PSU bank issues are resolved,” he said.
Positive cues from global markets and sustained foreign fund inflow too boosted investor sentiment here, traders said.
Foreign institutional investors bought equity worth Rs 1,215.36 crore on Monday, while domestic institutional investors sold shares to the tune of Rs 327.86 crore, provisional data available with stock exchanges showed.
Elsewhere in Asia, bourses in China, Japan and Korea were trading on a positive note in their respective early sessions.
Benchmarks on Wall Street too ended in the green in Monday’s session.
On the currency front, the rupee depreciated 21 paise to 69.72 against the US dollar.
Brent crude, the global benchmark, slipped 0.15 per cent to 68.67 per barrel.
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