Sensex climbs 220 points as new F&Q series begins on strong note

Market today remained buoyant for the fifth straight session as the Sensex regained the 27,000-mark by surging over 220 points after investors built more bets and foreign inflows continued, defying weak macroeconomic data.

The Nifty pulled above the 8,300-mark because of the rally. The beginning of the July series derivatives contracts and positive global conditions kept mood upbeat. But caution set in after official data showed that eight core sector output grew at a five-month low of 2.8 per cent in May, down from a four-year high of 8.5 per cent in April.

Fiscal deficit in April-May of 2016-17 was Rs 2.28 lakh crore, which is 42.9 per cent of Budget estimate, much higher than the year-ago period. The 30-share index, which had gained 602.01 points in the previous four sessions, added 220.29 points, or 0.81 per cent, at 27,220.01 on increased buying amid beginning of the July derivatives series.

All sectoral indices led by consumer durables, healthcare and metal were trading in the positive terrain, rising up to 1.13 per cent. The NSE Nifty too topped 8,300 by rising 58.60 points, or 0.70 per cent, at 8,346.35.

Traders said building of fresh long positions in the F&O segment by investors and speculators amid strong foreign fund inflows kept bullish sentiment intact. A firm trend in Asian markets as optimism that central banks globally will step up measures to support growth in the face of uncertainty caused by Britain’s vote to leave the EU and a firming rupee against the dollar quickened the buying pace on domestic bourses.

Japan’s Nikkei gained 0.67 per cent while Shanghai Composite rose 0.24 per cent in the initial session today.  Hong Kong is closed today for public holiday. The US Dow Jones Industrial Average ended 1.33 per cent higher yesterday.