Sensex bounces back by 195 points
Expressing disappointment over dismal 0.1 per cent industrial growth rate in April, Finance Minister Pranab Mukherjee today said the government would take steps to give positive signals to the industry. The Reserve Bank of India (RBI) in its mid-quarter review of monetary policy on June 18 is widely expected to announce steps to boost sagging economic growth, which dipped to nine-year low of 6.5 per cent in 2011-12.
The BSE benchmark sensex resumed lower at 16,570.51 and declined further to 16,553.47 on weak cues from Asian equity markets amid euro-zone debt worries. However, it recovered afterwards to 16,897.42 before ending at 16,862.80, showing a gain of 194.79 points or 1.17 per cent on release of IIP data. Foreign capital inflows into equity markets coupled with higher opening in European stock markets also boosted the market sentiment.
Foreign institutional investors (FIIs) bought shares worth a net Rs 130.39 crore on Monday as per provisional figures from the stock exchanges. Asain stocks ended lower, giving back much of the steep gains made in the previous session, as initial euphoria over Spain`s bank bailout gave way to uncertainty over the details. Key benchmark indices in China, Hong Kong, Japan, South Korea and Taiwan fell by between 0.43 per cent to 1.02 per cent while Singapore`s Straits Times rose by 0.33 per cent. European stocks firmed up in their opening trade as key benchmark indices in UK, France and Germany moved up by 0.32 per cent to 0.48 per cent.
The NSE 50-share Nifty also rose by 61.80 points or 1.22 per cent to finish at 5,115.90. Out of the 30-share sensex pack, 25 scrips finished with gains while others ended with losses. Major gainers were Maruti Suzuki (3.48 pct), Tata Motors (3.14 pct), Larsen (2.53 pct), Sterlite Ind (2.51 pct), Hindalco Ind (2.16 pct), ONGC (1.99 pct), SBI (1.96 pct), M&M (1.87 pct), HDFC Bank (1.85 pct), Icici Bank (1.61 pct), ITC (1.48 pct), NTPC (1.48 pct), BHEL (1.39 pct), Bharti Airtel (1.36 pct), Coal India (1.34 pct) and Infosys (1.24 pct).
However, Dr Reddy`s Lab fell by 1.81 pct and Wirpo by 1.71 pct. Among the sectoral indices the BSE-Realty shot up by 2.01 pct followed by the Bankex 1.90 pct, the BSE-Capital Goods 1.84 pct, the BSE-Auto 1.76 pct, the BSE-Consumer Durable 1.52 pct, the BSE-PSU 1.34 pct, the BSE-Power 1.11 pct and the BSE-Metal 1.05 pct. The market breadth continued to show positive trend as 1,361 shares finished in green while 1,312 ended in red. The total turnover moved up to Rs 1,963.27 crs from Rs 1,947.16 crore on Monday.