A slight ease in crude oil prices along with value buying and a strong rupee aided the benchmark Sensex to snap its longest consecutive sessions fall in the last eight years on Wednesday.
Accordingly, the benchmark index closed with handsome gains of over 400 points while the Nifty50 jumped past the 10,700 mark after struggling in the past sessions.
Adding to the positive momentum were the gains made by the rupee and healthy domestic investment which were supported by expectations that the US and China may resolve their trade tensions.
“Positive global markets lifted the domestic market sentiments after 2 weeks of under performance. Dovish minutes from US Fed and resumption of dialogue between US and China added positive vibes to the global market,” said Vinod Nair, Head of Research, Geojit Financial Services.
“Strong inflows from DIIs, appreciation of rupee and value buying in mid and small caps helped the domestic market.”
The S&P BSE Sensex closed 403.65 points or 1.14 per cent higher at 35,756.26 from its previous close of 35,352.61, while the NSE Nifty50 ended 131.10 points or 1.24 per cent higher at 10,735.45.
Among the top gainer were Vedanta, which inched up 4.67 per cent, followed by Tata Steel, up 4.13 per cent. ONGC, NTPC and Yes Bank came next.
Sensex saw only four stocks ending in the red led by Hero Moto Corp, Hindustan Uniliver, Bajaj Auto and IndusInd Bank.
“During the penultimate hour, we saw emergence of strong buying interest, reclaiming 10,700 convincingly by adding more than 130 points to the bulls’ kitty,” said Sameet Chavan, Chief Analyst, Technical and Derivatives, Angel Broking.
Historically, Chavan said it had been observed that whenever index corrects for eight straight sessions without surpassing the previous day’s high, the ninth day becomes a reversal day or a bounce back day. (IANS)
Lower production of crude oil and fertilisers decelerated the output pace of India’s eight major industries in April to 2.6 per cent, official data showed on Friday.
According to the Ministry of Commerce and Industry data, the index of eight core industries had risen 4.7 per cent in April 2018. On a sequential basis, the core sector grew by 4.9 in March this year.
The core sector index carries 40.27 per cent weightage of the items included in the index of industrial production (IIP).
“The combined Index of Eight Core Industries stood at 127.5 in April, 2019, which was 2.6 per cent higher as compared to the index of April, 2018. Its cumulative growth during April to March, 2018-19 was 4.3 per cent,” the Ministry said in a statement.
On sector-specific basis, the output of refinery products, which has the highest weightage of 28.03, grew 4.3 per cent in April 2019 compared to the corresponding month of the last fiscal.
Electricity generation, which has the second highest weightage of 19.85, increased by 5.8 per cent.
Steel production, the third most important component with a weightage of 17.91, was up by 1.5 per cent during the month under review, whereas coal mining, with a 10.33 weightage, was higher by 2.8 per cent.
On the other hand, extraction of crude oil, which has a weightage of 8.98, declined by (-) 6.9 per cent during the month under consideration.
The sub-index for natural gas output, with a weightage of 6.87, inched-lower by (-) 0.8 per cent.
Cement production, which has a weightage of 5.37, rose by 0.8 per cent in the month under review.
Fertiliser manufacturing, which has the least weightage of only 2.62, declined by (-) 4.4 per cent in April.
“Except electricity and to some extent refinery products and coal, all other segments of core sector have performed poorly in April 2019,” said Sunil Kumar Sinha, Director — Public Finance and Principal Economist India Ratings & Research (Fitch Group).
“The government capex spending is the key driver of growth for core infrastructure industries because private corporate investment is down and out. With new union government in place India Ratings (Ind-Ra) believes much of the future performance of these core infrastructure industries would depend on what is there in store for them in the full budget which is expected to be presented in the month of July 2019.” (IANS)