INSUBCONTINENT EXCLUSIVE:
NEW DELHI: Stocks wriggled out of a tough situation on Monday and ended positive for the sixth straight session, saved just in time by a
rally in banking shares.
Market participants factored in an accommodative stance by the US Fed at its next policy meet, which added to the
appeal of equities.
A narrowing trade deficit and FII buying offered more tailwinds
Rupee's superb show against the dollar, up by as much as 50 paise, prompted more buying
Benchmark indices saw a gap-up start, but traders locked in gains soon after
Heavyweight RIL and select private stocks contributed most to Sensex's rally
The BSE benchmark settled up 71 points, or 0.19 per cent, at 38,095
NSE Nifty closed at 11,462, up 35 points, or 0.31 per cent.
Market at a glanceIn the 30-share index, 18 stocks advanced while 12 declined
Bajaj Finance was the top index gainer, ending 2.84 per cent higher
Power Grid, Axis Bank, RIL and Tata Steel were among other top performers
Meanwhile, shares of Maruti Suzuki slipped the most amid reports that the company has cut production by 26.8 per cent to close to 1,26,000
The scrip closed at 2.56 per cent lower.
Midcaps and smallcaps, however, lost ground, ending 0.20 per cent and 0.13 per cent down,
respectively.
In the sectoral space, auto stocks bled the most (down 1.36 per cent), followed by telecom, IT and teck
Realty, on the other hand, was the show stealer, rising 2.46 per cent
Energy and oil and gas too recorded firm gains, rising over 1.50 per cent each.
Factors at workRupee rallyThe rupee continued its climb
against the dollar amid firm foreign inflows in Indian equities and weakness in the greenback
The local currency rose as much as 50 paise to 68.59
According to a Reuters poll, analysts are bullish on the rupee for the first time in nearly a year.
Global markets stay upbeatGlobal stocks
rose to their highest in five months and the dollar dipped on Monday as traders began to price in an accommodative stance from the US
Federal Reserve at its policy meeting this week
The pan-European STOXX 600 index rose 0.3 per cent, hitting a five-month high
MSCI's All-Country World index, which tracks shares in 47 countries, was up 0.3 per cent on the day.
Expert-takeMarket failed to hold the
opening momentum as profit booking emerged after the recent sharp rally
Liquidity situation in the market is improving and Indian rupee continued to gain strength over the dollar while domestic 10-year yield slid
Auto index dragged the most due to mixed demand and higher inventory levels
On the other hand, investors are awaiting Fed policy later in the week to get more cues about global market movement- Vinod Nair, Head of
Research, Geojit Financial Services
