Mumbai : The benchmark BSE Sensex rose for the second straight day on Monday by surging 363 points to close at over three-week high of 27,687.30 after government reported fiscal deficit at 4.0 per cent of GDP, while continuing rate cut hopes amid forecast of timely monsoon helped too. This is the best closing since April 23 when Sensex had closed at 27,735.02. The gauge has now gained 481.24 points in two sessions.
On Monday, the India Meteorological Department said the southwest monsoon set in over south Andaman Sea, parts of Andaman Islands and south Bay of Bengal Saturday, four days ahead of usual.
The sentiment was also boosted by value-buying in recently beaten down blue-chip stocks.
Shares of fuel retailers, HPCL, BPCL and IOC, surging up to 4 per cent after petrol price was hiked over the weekend contributed to 30-share barometer’s gains. Bettering its own financial targets, the government said that it has contained the fiscal deficit at 4 per cent of GDP for 2014-15 at Rs 5,01,880 crore. “The sentiments were on optimistic note in response to the government statement that it has contained the fiscal deficit at 4 percent of GDP for 2014-15, bettering its own financial targets,” said Jayant Manglik, President-retail distribution, at Religare Securities.
Equity brokers said sentiments got bolstered after a forecast of a timely monsoon and expectations of a rate cut by the Reserve bank at its policy meet early next month following cooling inflation and slowing industrial growth. The Nifty ended at 8373.65, up 111.30 points, or 1.3%, from Friday’s close after hitting a high of 8384.60 intraday.
