Bull run continues on Indian bourses (Roundup)

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Mumbai, March 2 (IANS) The bull run on Indian stock markets continued for the second straight day on Wednesday, with the mood lifted by perception that the national budget has some reforms push, as also by strong showing in other Asian markets and overnight gains in US and Europe.

The opening itself was quite strong with the sensitive index (Sensex) of the BSE debuting above the 24,000-point mark at 24,044.96 points, against the previous close at 23,779.35 points. The 30-share index eventually ended the day at 24,242.98 points, up 463.63 points, or 1.95 percent.

At the National Stock Exchange (NSE), the broader Nifty opened at 7,321.70 points, against the previous close at 7,222.30 points. It closed then day at 7,368.85 points, up 146.55 or 2.03 percent.

A look at the Sensex basket showed that out of its 30 shares, as many as 23 ended in the green, while in the case of Nifty 40 of them out of the 50 staged a rally. In fact, out of 19 sector-specific indices of BSE only one — that for fast-moving consumer goods — ended lower.

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On Tuesday, the Sensex had ended 777.35 points or 3.38 percent higher, while the Nifty was up 235.25 points, or 3.37 percent.

Analysts said the sentiments were also boosted by signs of a surprise rate cut by the Reserve Bank of India (RBI), given that Finance Minister Arun Jaitley has decided to adhere to fiscal deficit target of 3.9 percent for this fiscal, and lowering it to 3.5 percent for the next.

In fact, some more accolades came Finance Minister Arun Jaitley’s way for the budget.

“In the backdrop of the headwinds both on the global and domestic front, the government has tried to address a wider spectrum of themes in the Budget while adhering to the fiscal consolidation roadmap,” said Dun and Bradstreet Information Services.

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“This should provide comfort to the investors and rating agencies from the macrostability perspective. This should provide comfort to the investors and rating agencies from the macrostability perspective.”

“Market had taken faith in the budget and believes that the worst is over. Investors expect a positive direction for the market this month aided by European Central Bank and Fed policy meet. A sign of recovery in global market is adding optimism among the participants,” said Vinod Nair, head – fundamental research, Geojit BNP Paribas Financial Services.

The banking stocks were particularly sought after the central bank said it will be accommodative towards them in meeting their capital adequacy norms. The banking index of the BSE was up 4.92 percent, and each of the 10 scrips that go into it ending with gains.

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Sector-wise, S&P BSE realty index gained by 5.05 percent, finance index got augmented by 4.03 percent and basic materials index went up by 2.70 percent.

Within the Sensex, State Bank of India was the main gainer, up 11.50 percent at Rs.180, followed by ICICI Bank, up 7.36 percent at Rs.220.20, Adani Ports, up 5.96 percent at Rs.218.80 and Hero MotoCorp, up 5.28 percent at Rs.2,807.75.

Mahindra and Mahindra led the losers, down 5.31 percent at Rs.1,199.05, followed by Coal India, down 1.97 percent at Rs.311.45 and Sun Pharma, down 1.75 percent at Rs.852.30.

In Asian markets, Nikkei closed 4.11 percent up and Hong Kong’s Hang Sang closed 3.07 percent up and China’s Shanghai Composite index closed 4.24 percent higher.

In Europe, London’s FTSE 100 was down by 0.12 percent, while Germany’s DAX Index was higher by 0.04 percent and France’s CAC 40 up by 0.28 percent.

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