After 6 days of struggle, the bulls finally got some respite on Dalal Street. A relief rally across the globe also helped the market to bounce back. The Sensex was up 424.06 points or 1.7 percent at 25317.87 and the Nifty gained 129.45 points or 1.7 percent at 7688.25. About 1439 shares advanced, 1211 shares declined and 127 shares were unchanged. Banks gave a major philip to the benchmark indices.
Bankex and Capital Goods index were up 3.5 percent and 3 percent respectively. HDFC twins, SBI, ICICI Bank and SBI led Bankex. Metals, auto and oil & gas too rallied in tandem with peers. Big gainers of the day were BHEL, GAIL and Tata Steel (up 6 percent each).
Only FMCG index, dragged by HUL (down 2 percent), ended in red. Bharti, Cipla and Infosys were down marginally.
Midcap index was up 1 percent with lead gainers like Crompton Greaves, NCC, Hindustan National Glass, 3M India and Allcargo.
Analysts feel market correction in the best time to enter equities, Rajat Rajgarhia, Chief Executive Officer (CEO) – Institutional Equities, Motilal Oswal Securities says corrections over the last month have been excessive and long term investors should take advantage of them.
Rajgarhia is hopeful of an uptick in corporate earnings over the next two quarters, and expects oil marketing companies, media, automobile sector and private sector banks to be among the big beneficiaries.
What boosted market sentiment today was Prime Minister Narendra Modi’s meet with India Inc to take stock of country’s economic situation.
Modi exhorted the country’s top businessmen to increase investments in the country when they met him today to discuss recent global events and the state of the economy, Finance Minister Arun Jaitley said. The participants, the FM said, expect some volatility in the currency and equity markets to continue but believe that the country’s fundamentals were reasonably strong.
The PM’s meeting with India Inc was also attended by top policymakers and bureaucrats, including the FM, RBI governor Raghuram Rajan, chief economic advisor Arvind Subramanian and the finance secretary.
Meanwhile, global rating agency Moody’s Investors Service has lowered its GDP growth forecasts for quite a few Asia Pacific (APAC) countries, citing subdued global growth, “exacerbated by weaker demand”.
Globally, China’s Shanghai Composite ended 3 percent higher despite a volatile session. Most of the gains came in the last few minutes of trade. The Japanese Nikkei ended with sharp losses.
Brent Crude is up close to 2 percent at USD 48 a barrel. Meanwhile, WTI Nymex is down 2 percent to the USD 45 mark.