Stocks soar as investors cheer govt’s eco agenda

Mumbai : Strong inflows from foreign institutional investors continued to fuel rally in the benchmark indices, which ended at record closing highs yet again, boosting stock wealth by Rs 1 lakh crore.

The Sensex resumed strong on firm Asian cues and improved further to a new intra-day historic high of 25,644.77 before settling at 25,580.21 -also new closing peak- up by 183.75 points or 0.72 per cent. In straight three sessions, it has jumped by 774.38 points or 3.12 per cent.

Gains in the market were broad-based amid hope that government will announce policy reforms in its budget for the current financial year next month. Several sector indices tested 52-week highs intraday. Among sectoral indices, the S&P BSE Auto index hit its lifetime high intraday while the S&P BSE Metal, S&P BSE Capital Goods, S&P BSE Power, S&P BSE Realty, S&P BSE Mid Cap and the S&P BSE Small Cap indices hit 52-week highs. Investor wealth rose to Rs 90.26 lakh crore as 2,300 stocks rose of the over 3,100 traded. Overseas investors have pumped in a staggering over Rs 1 lakh crore into the Indian equities since the beginning of the year, mainly on hopes of a stable and reforms-oriented government at the Centre. These huge inflows included a net investment of Rs 11,625 crore in the first week of June alone. FIIs, the main driver of the equity market, have helped in pushing up the benchmark BSE Sensex by over 20 per cent so far this year.

Bajaj Auto, Coal India and L&T led the 20 Sensex gainers. The broader 50-issue CNX Nifty of the NSE also flared up by 71.20 points, or 0.94 per cent, to log its fresh closing high of 7,654.60. It touched a new intra-day peak of 7,673.70.

Addressing a Joint Sitting of Parliament, President Pranab Mukherjee said curtailing food inflation will be Prime Minister Narendra Modi’s top priority as his government pursues broad economic reforms focused on job creation, reviving growth, encouraging FDI and introducing a non- adversarial tax regime. Remarks on infrastructure programmes, revamping of railways and enhancing electricity generation capacity. also boosted the market sentiment, sending indices to new peaks.

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