Mumbai : Equities jumped on Tuesday for the second day running as the benchmark Sensex climbed over 181 points to close at a fresh 11-month high of 27,808 on sustained capital inflows ahead of key macro data of IIP and CPI inflation.
The NSE Nifty too got past its key 8,500-mark. Asia rallied on the back of an overnight record close in the US following last week’s strong US jobs data. Europe also started off on a higher note on hopes that more stimulus from central banks are on the way to contain the Brexit fallout. Back home, prospects of encouraging Q1 earnings numbers, an above-normal monsoon so far and its progress, and hopes of the GST Bill passing the Rajya Sabha muster in the upcoming monsoon session accelerated buying activity. There is considerable buzz among investors on likely announcement of the government of a new RBI Governor in the next few days.
The Sensex surged 181.45 points, or 0.66 per cent, to end at a new 11-month high of 27,808.14 on widespread gains ahead of release of key macroeconomic data — IIP for May and Consumer Price Index-based inflation (CPI) for June.
The gauge had soared almost 500 points in yesterday’s trade on across the board buying amid positive global cues. The broader NSE Nifty recaptured the 8,500-mark and ended at 8.521.05, up 53.15 points or 0.63 per cent. Intra-day, it moved between 8,526.60 and 8,479.20.
Both indices closed at their highest levels in 11 months. “The market extended gains as the expectation of stimulus from various global central banks aided the rally. Good monsoon and hope of positive start of earnings season will be key triggers, going forward,” said Vinod Nair, Head of Research, Geojit BNP Paribas Financial Services.
