BUSINESS

Easing oil prices, approaching monsoon lift equity indices

Mumbai, May 28: The expected arrival on time of the southwest monsoon over India’s mainland as well as a fall in global crude oil prices lifted the key domestic equity indices for the third consecutive session on Monday.

According to market analysts, the rebound in rupee strength and healthy buying by domestic investors also supported the key indices.

Index-wise, the wider 50-scrip Nifty of the National Stock Exchange (NSE) closed at 10,688.65 points — up 83.50 points or 0.79 per cent — from the previous close of 10,605.15 points.

Similarly, the 30-scrip Sensitive Index (Sensex) of the BSE settled the day’s trade with gains. It opened at 35,074.32 points and closed at 35,165.48 points, higher by 240.61 points or 0.69 per cent from the previous close of 34,924.87 points.

During the intra-day trade, the Sensex touched a high of 35,240.96 points and a low of 35,006.50 points.

In the broader markets, the S&P BSE mid-cap index rose 1.35 per cent while the S&P BSE small-cap index ended 1.60 per cent higher. The BSE market breadth was bullish with 1,843 advances so far against 848 declines.

“Investor sentiments were boosted by a decline in crude oil prices and appreciation in the value of rupee, which will be positive for India’s macros,” Deepak Jasani, Head of Retail Research at HDFC Securities told IANS.

Geojit Financial Services’ Head of Research, Vinod Nair said: “Additionally, market optimism may increase as monsoon is about to hit the southern peninsula which will support the consumption led story and rural economy.”
Further, on the currency front, the Indian rupee strengthened by 34 paise against the US dollar to 67.44, from its previous close at 67.78 per greenback.

Besides, provisional data with exchanges showed that foreign institutional investors sold scrips worth Rs 795.06 crore, while the domestic institutional investors bought stocks worth Rs 1,017.65 crore.

Sector-wise, the S&P BSE capital goods index surged by 464.66 points, the banking index rose by 350.03 points and the oil and gas index gained by 344.68 points.

On the other hand, the S&P BSE IT and Teck indices were the losers with decline of 233.52 points and 93.55 points respectively.

The major gainers on the Sensex were Sun Pharma, up 7.11 per cent at Rs 499.70; Coal India, up 3.22 per cent at Rs 284.95; Larsen and Toubro, up 2.52 per cent at Rs 1,377.60; Asian Paints, up 2.31 per cent at Rs 1,319.50; and State Bank of India, up 1.97 per cent at Rs 272.25 per share.

The top losers were Tata Consultancy Services, down 2.39 per cent at Rs 3,503.80; PowerGrid, down 2.31 per cent at Rs 207.05; Infosys, down 1.16 per cent at Rs 1,214.50; Mahindra and Mahindra, down 0.90 per cent at Rs 849.60; and Bharti Airtel, down 0.65 per cent at Rs 374.20 per share.(IANS)