Benchmark Indices Rise For 3rd Day On Economy Booster - Eastern Mirror
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Benchmark indices rise for 3rd day on economy booster

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By PTI Updated: Aug 27, 2019 8:43 pm

Mumbai, Aug. 27 (PTI): Indian equities continued their winning streak for a third session in a row amid easing concerns on the macro front after the government’s proactive measures to lift the economy and the Reserve Bank’s liquidity support.

The BSE benchmark Sensex ended 147.15 points, or 0.39 per cent, higher at 37,641.27 — a near three-week high level. During the day, the index hit a high of 37,731.51 and low of 37,449.69.

Similarly, the broader NSE Nifty rose 47.50 points, or 0.43 per cent, to 11,105.35. The gauge touched an intra-day peak of 11,141.75 and low of 11,049.50.

In the past three sessions, the Sensex has rallied 1,168.34 points or 3.20 per cent; and the Nifty has gained 364 points or 3.38 per cent.

Besides domestic economic factors, positive developments around the Sino-US trade tiff also boosted the Indian market sentiment.

Gains mainly in metal, auto and oil and gas counters drove the Sensex higher.

On the Sensex chart, Tata Motors was the biggest gainer, rallying 8.87 per cent, followed by Tata Steel, NTPC, IndusInd Bank, Vedanta and M&M, which gained up to 3.86 per cent.

On the other hand, Bharti Airtel, Infosys, TechM, TCS, Kotak Bank, Sun Pharma, HUL and Axis Bank fell up to 3.58 per cent.

A weakness in IT counters was seen on account of strengthening rupee, which surged 54 paise to 71.48 against the US dollar.

Sectorally, BSE metal, auto, industrials, oil and gas, capital goods, utilities and power indices rallied up to 2.04 per cent.

While, BSE telecom, teck and IT stocks fell up to 2.26 per cent.

Broader BSE midcap and smallcap indices too surged up to 1.63 per cent.

Investors took note of the Reserve Bank’s decision to transfer record INR 1.76 lakh crore to the government, which is expected to help improve the liquidity situation in a big way.

Besides, domestic equities have been riding a wave of optimism after the government came out with stimulus measures to revive the economy.

Domestic equities also followed global stocks, that rallied after US President Donald Trump Donald Trump said China-US trade talks would resume soon.

“Buying continued as hopes of economic recovery in H2 FY20 picked up after government’s proactive measures and additional liquidity from the RBI which will clear the near-term hindrance in the market. But any further shortfall in tax collection may influence the government to channelise the surplus fund on meeting the fiscal target,” Vinod Nair, Head of Research, Geojit Financial Services, said.

Further momentum will be tested based on the outcome of Q1 FY20 GDP during the week whereas the consensus is showing reduction in growth to 5.7 per cent due to weak investment and slowing consumption, he said.

Asian markets recovered on Tuesday after signs that the US and China could come back to the bargaining table in their talks on trade dispute.

Shanghai Composite Index, Hang Seng, Kospi and Nikkei ended on a positive note. Equities in Europe were trading in the green in their respective early sessions.

Brent crude futures, the global oil benchmark, rose 0.93 per cent to USD 58.66 per barrel.

The RBI approved the transfer of record INR 1.76 lakh crore dividend and surplus reserves to the government, boosting Prime Minister Narendra Modi-led regime’s prospect to stimulate the slowing economy without widening fiscal deficit.

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By PTI Updated: Aug 27, 2019 8:43:07 pm
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