Sensex rallies 145 points, logs best weekly jump since May

Market registered its biggest weekly gain since May as the Sensex rallied over 145 points to end at 27,145, an 8-month high, buoyed by data that showed manufacturing activity gathered steam last month amid strong foreign capital inflows.

Globally, shares traded strong, which came as strong cues for the domestic market. In the process, the NSE Nifty reclaimed 8,300 to close at an over 10-month high of 8,328.

According to the monthly PMI survey, India’s manufacturing hit a three-month high in June, backed by a stronger increase in new business orders. The Nikkei Markit India Manufacturing PMI rose to 51.7 in June, from 50.7 in May.

Progress of monsoon has rekindled interest in India growth story after the weather office said rainfall for the week ended June 29 is 1 per cent above the average.

That apart, a heightened sense of optimism because of steps to liberalise the FDI regime further, Cabinet approval to pay hike for government employees and improved chances of GST passage in the Upper House of Parliament played its part in the rally.

Rising for the fifth day, the Sensex settled higher by 145.19 points, or 0.54 per cent, at 27,144.91, its highest closing since October 27, 2015, when it ended at 27,253.44.  The index had gained 602.01 points in the previous four sessions.

At the close, the 50-share NSE Nifty was at 8,328.35, up 40.60 points, or 0.49 per cent—a level last seen on August 20 last year. For the week, the Sensex climbed 747.20 points, or 2.83 per cent, while NSE Nifty surged 239.75 points, or 2.96 per cent. For both, the jump is their best weekly gain since May 27.

The rebound in global markets on hopes that central banks will put their act together to tackle the Brexit impact and an appreciating rupee against the dollar came as a big turn-on.

As many as 18 out of the 30-share Sensex pack advanced. ONGC took the top slot, by rising 3.72 per cent, followed by L&T (2.97 per cent), ITC (2.83 per cent), Dr Reddy’s (2.77 per cent) and GAIL (2.61 per cent).

The BSE oil and gas index gained the most by climbing 2.76 per cent, followed by capital goods 2.10 per cent, FMCG 1.85 per cent, PSU 1.60 per cent and healtchare 1.04 per cent.

Mid-cap and small-cap too rose 1.20 per cent and 0.71 per cent, respectively, on buying spree by retail investors. Shares of the country’s second-largest CNG retailer Mahanagar Gas today made a strong debut at the bourses, ending 23.92 per cent higher at Rs 520.30 against the issue price of Rs 421.

Meanwhile, foreign portfolio investors (FPIs) bought shares worth a net Rs 1,107.42 crore yesterday, as per provisional data. Asian stocks edged up tracking overnight gains in the US.  Overseas, shares in Japan surged 0.68 per cent, Shanghai 0.10 per cent and Singapore 0.19 per cent. Financial markets in Hong Kong were closed today for a public holiday.

European markets too were showing a firm trend. London’s FTSE rose 0.35 per cent while Paris shares gained 0.09 per cent and Frankfurt rose 0.26 per cent.