Sensex closes 276 points up, Nifty rises, Tata Steel, Sun Pharma top gainers
Mumbai: Market brimmed with confidence on Tuesday as the Sensex breached the 32,000 mark again by climbing 276 points to bring up a nearly one-month closing high, with the focus clearly on key macroeconomic data. The broader NSE Nifty scaled a high of 10,097.55 before closing up 87 points,or 0.87%, at 10,093.05, the highest closing since 1 August when it settled at 10,114.65.
July index of industrial production (IIP) data and retail inflation for August are slated for release later in the day. With this, both benchmarks extended the gains for the fourth day in a row. Risk aversion was clearly relegated to the background after a rally in global markets as the US stocks hit a fresh record high on Monday on fading worries about North Korea and impact of Hurricane Irma on the US.
The BSE Sensex stayed above the base line throughout the session before settling higher by 276.50 points, or 0.87%, at 32,158.66 on continuous inflow of funds by domestic institutional investors (DIIs). This is the highest closing since 7 August when the figure stood at 32,273.67. The index had rallied 220.19 points in the previous three sessions.
Covering up short positions at some counters by speculators fearing buying activity to pick up in coming session supported the upside, traders said. DIIs took shares worth a net Rs 877.37 crore while foreign portfolio investors (FPIs) sold equities of Rs 392.52 crore on Monday, showed provisional data.
Tata Steel Ltd broke free topping the gainers’ chart rallying 3.30% to hit an over six-year high of Rs683.15 after the company concluded a new agreement under which its UK business stands separated from the 15-billion pound British Steel Pension Scheme (BSPS). Sun Pharma, Tata Motors, Hindustan Unilever and M&M landed on the winning side.
Coming to sectors, realty was in a sweet spot, up 2.11%, followed by healthcare index, oil and gas and FMCG. Broader markets turned green, with mid- and small-cap indices rising up to 1.08%. Most Asian markets remained firm. European indices advanced in early trade on positive leads from Asia and a record close on Wall Street.