Free Press Journal

Sensex gains 250 points, automobile stocks rise



Mumbai: A day after it surged more than 280 points, a barometer index of the Indian equities markets continued its upward trajectory and gained more than 250 points during the late-afternoon session.

The 30-scrip Sensitive Index (Sensex) of the S&P Bombay Stock Exchange (BSE) gained 251.43 points or 0.93 percent during the session under review.  The wider 50-scrip Nifty of the National Stock Exchange (NSE) also made gains during the late-afternoon trade session. It was trading 71.75 points or 0.88 percent up at 8,246.35 points.

The Sensex which opened at 27,207.76 points, was trading at 27,367.26 points (at 2.30 p.m.), up 251.43 points or 0.93 percent from the previous day’s close at 27,115.83 points. The Sensex touched a high of 27,371.61 points and a low of 27,202.38 points in the intra-day trade so far.

On Thursday, the barometer index close the day’s trade more than 280 points up a day after the US Federal Reserve decided not to raise interest rates in June. The Fed had slashed interest rates to near 0 percent in December 2008 to help rejuvenate the battered economy.

The US Fed’s stand that the rate hike might take place in the later part of the year might effect the Indian markets.  With higher interest rates in the US, the FPIs (Foreign Portfolio Investors) are expected to be led away from the emerging markets such as India.1

During the intra-day trade on Friday, healthy buying took place in the automobile, oil and gas, healthcare, capital goods and banking stocks. However, realty and power scrip came under selling pressure.

The S&P BSE automobile index augmented by 175.24 points, followed by the oil and gas index which edged-higher by 137.33 points, healthcare index rose by 119.01 points, capital goods index increased by 107.62 points and bank index was up by 105.97 points. The S&P BSE realty index lost 5.63 points and power index slipped by 4.83 points.