Sensex gains 259 points; interest sensitive stocks up

Mumbai, July 22 (IANS) A day after it fell by 238 points on the back of disappointing quarterly results, a barometer index of the Indian equity markets gained 259 points during the mid-afternoon trade session on Wednesday.

Investor sentiment was buoyed after positive statements were made by the government which indicated political willingness to resolve the impasse on crucial legislations like the goods and services tax (GST) and land bill.

Investors also seemed to be willing to make value purchases after Tuesday’s price fall.

The barometer 30-scrip sensitive index (Sensex) of the S&P Bombay Stock Exchange (BSE) was trading at 258.81 points or 0.92 percent up during the session under review.

The wider 50-scrip Nifty of the National Stock Exchange (NSE) also made gains and was trading 80.45 points or 0.94 percent up at 8,609.90 points.

The S&P BSE Sensex, which opened at 28,159.42 points, was trading at 28,440.95 points (1.30 p.m.), up 258.81 points or 0.92 percent from the previous day’s close at 28,182.14 points.

The Sensex so far touched a high of 28,465.20 points and a low of 28,070.91 points in the intra-day trade.

“Investor confidence was boosted after positive statements were made by the government and the principal opposition party on the possibility to find a way to clear the GST,” Anand James, co-head, technical research, Geojit BNP Paribas, told IANS.

“The prime minister’s assurance that states will be given autonomy to craft changes in their own version of land bill gave hope about its passage. Expectation that parliament will be able to clear these two legislations in the monsoon session has added positive sentiments.”

According to James, other major triggers to focus at will be the Justice A.P.Shah panel’s report on MAT (minimum alternate tax), expected to be submitted some time next week.

“Foreign portfolio investors’ (FPIs) inflows might be impacted due to the MAT issue. The FPIs have been consistent net buyers in the Indian markets since July 13,” James added.

The MAT issue on capital gains is expected to impact the margins of foreign funds.

Sector-wise, healthy buying took place in interest rate sensitive stocks like automobile, oil and gas, bank, healthcare and capital goods. However, IT and technology, entertainment and media (TECK) scrip came under intense selling pressure.

The S&P BSE automobile index zoomed by 223.05 points, oil and gas index jumped by 209.02 points, bank index augmented by 185.18 points, healthcare index gained by 115.26 points and capital goods index was up 96.66 points.

The BSE S&P IT index declined by 29.99 points and TECK index was lower by 16.37 points.

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