President’s speech at Parliament boosts sentiment
President’s speech at the joint session of Parliament boosted sentiment on bourses as stock indices closed at historical high on Monday.
The S&P BSE Sensex closed at 25580.21 with a gain of 183.75 points or 0.72 per cent. The benchmark index touched an intra-day high of 25644.77.
“Markets continued their buoyant up-move even today. The President’s address to the joint session of the Parliament was appreciated by the markets as it unveiled the promise of many structural reforms,” said Sudip Bandyopadhyay, Managing Director and Chief Executive Officer of Destimoney Securities.
Apart from this, buoyancy in Asian markets and liquidity easing measures taken by the European Central Bank (ECB) led to the overall positive mood, Mr. Bandyopadhyay said. The rally was significant in cement counters. Positive brokerage reports led to all-round buying in cement counters.
The markets witnessed broad-based rally at the mid-cap stocks were up by 1.47 per cent while small-cap stocks surged by 2.13 per cent. The BSE 100 index also rallied by 1.07 per cent. The 50-share Nifty of the National Stock Exchange gained 71.20 points to close at 7654.60.
Emphasis on infrastructure development outlined in the Presidential speech led the up-move in real estate, infrastructure, construction, railways-related and capital goods stocks, said Mr. Bandyopadhyay adding that the buoyancy was expected to remain unabated.
Stocks of companies related to defence sector gained up to 6 per cent on hopes that the Narendra Modi-led government will introduce new policies including liberalised FDI in the sector. Shares of BEML surged 5.71 per cent to Rs. 778.10. Scrips of Walchandnagar Industries rose 5 per cent to Rs. 117.60.
Addressing the first joint sitting of Parliament after the recent Lok Sabha elections, President Pranab Mukherjee said the Government will introduce new policies including liberalised FDI in defence to strengthen and develop a strong indigenous defence industrial base.Rupee down 3 paise
The rupee on Monday erased initial gains and logged its first drop in four sessions to end at 59.20 against the dollar on late demand for the American currency from importers. At the inter-bank foreign exchange market, the rupee commenced higher at 59.10 a dollar against its previous close of 59.17. It later improved further to a high of 58.98 before closing at 59.20, a fall of three paise.