Jewellery stocks surged across the board after the 18-day long strike by jewellers ended on Saturday night.
Markets finished the session on a strong note as clamours for higher than expected rate cut by the Reserve Bank of India grew louder with bank shares leading the gains.
The S&P BSE Sensex ended up 332 points at 25,285 and Nifty50 ended above 7,700- first time since January 6, 2016 as it finished at 7,704, up 100 points.
Broader markers outperformed their larger peers as BSE Midcap and Smallcap indices ended up by 1.4% each.
“Nifty closed above the 7700 mark for the first time since early January. The rise in markets came on the back of supportive global cues and increased expectations of a rate cut by the RBI.
Going ahead, RBI rate cut, quarterly results and legislative action in the second half of the budget session will be the important triggers for the markets, apart from the global cues,” said Dipen Shah, Senior Vice-President & Head of Private Client Group Research, Kotak Securities in a note.
In the commodity space, oil prices slipped for a second day, extending Friday's slide of over 1% after the U.S rig count rose for the first time since December, renewing worries of a supply glut after an output freeze proposal had helped boost the market to 2016 highs.
Meanwhile, foreign portfolio investors bought shares worth a net Rs 1712.62 crore during the previous trading session on Friday, as per provisional data released by the stock exchanges.
On the global front, Asian markets slipped as a retreat in oil prices made investors cautious, but losses were tempered by hopes that China may soon cut interest rates again as pressure on the yuan eases.
However, European markets are trading firm with all the major indices trading up between 0.2%- 1.3%.
SECTORS &STOCKS
Sectorally, BSE FMCG, Bankex, Capital Goods, and Consumer Durables indices all ended up between 1.5% and 2.5% each.
The government will begin the payment of salaries and pensions to its 48 lakh employees and 52 lakh pensioners based on the seventh pay commission recommendations from July along with six months’ arrears.
This will in turn boost the consumption and led to a powerful rally in the FMCG stocks.
In this pack, HUL finished 4% higher. Its peers Ruchi Soya, ITC, Gilette, Britannia, Venkey’s Dabur also gained between 1% and 4.5%.
Banking shares mainly public sector banks rallied after the government announced a steep cut in interest rates on small savings schemes.
SBI soared 3% while Punjab National Bank (PNB), IDBI Bank, Oriental Bank of Commerce, Allahabad Bank, Bank of India and Bank of Baroda ended up more than 1% each on the National Stock Exchange.
Jewellery stocks are surging across the board after the 18-day long strike by jewellers ended on Saturday night.
PC Jeweller, Gitanjali Gems, Titan, Tribhovandas Bhimji Zaveri soared 3.5%-6%.
However, Hero Motocorp, BHEL, Lupin finished 1-2% lower in an otherwise strong market.
Among other shares, Aurobindo Pharma gained 3% after the company said that it has received final approval from the US Food & Drug Administration to manufacture and market Naproxen Sodium Tablets USP, 220 mg (OTC).
Prestige Estates Projects zoomed 10% on the BSSE after the Board of Directors of the Company at its meeting held on March 19, 2016, has approved the payment of interim dividend at the rate of 12% i.e. (Rs. 1.2 per share) for the financial year 2015-16.
Image: A stock trader reacts. Photograph: Reuters
