Despite the monsoon’s weak coverage country-wide, stock indices seem to be gaining momentum as market participants are pinning hopes on favourable budgetary proposals in the forthcoming Union Budget.
The Bombay Stock Exchange (BSE) 30 share Sensitive Index (Sensex) closed at 25413.78, a again of 313.86 points or 1.25 per cent. The BSE 100 rose 1.40 per cent, while mid cap stocks gained 1.89 per cent and small cap stocks 1.80 per cent.
On the National Stock Exchange (NSE), the 50-share Nifty gained 102.55 points or 1.37 per cent to close at 7611.35. “The market opened on a flat note but quickly moved to 7600 levels led by PSU banks, capital goods and infra stocks. Even select pharmaceutical and technology stocks did well on the back of performances of last few days,” said Shrikant Chouhan, Head-Technical Research, Kotak Securities.
“We are of the view that sustenance above 7550 will lift the market beyond the all time high level of 7700. In case, if indices fail to give support, then certainly one can add long positions to the trading portfolio with a medium to long term view,” Mr. Chouhan added.
“The Nifty opened with a positive note on Monday and breached 7600, the key resistance level, which forced the traders to cover their short positions. The outlook is still not clear. If the Nifty could manage to close at least two consecutive days above 7600 levels then we can expect further uptrend in coming days,” said Alex Mathews, Head Research, Geojit BNP Paribas Financial Services.
The rupee meanwhile closed at 60.17 a dollar compared to 60.08 on the previous trading day.
