Brokers said trading sentiment bolstered on reports of the trade deficit in September easing to a 30-month low
The S&P BSE Sensex closed above the 20000-mark on Wednesday following sharp fall in trade deficit for September and the news that President Barak Obama would appoint Janet Yellen as the next Chairperson of U.S. Federal Reserve.
Despite a lower trade deficit, the rupee slipped further against the dollar to close at 61.93 on Wednesday compared to its previous close of 61.79 a dollar. It touched an intra-day low of 62.30.
The S&P BSE Sensex closed at 20249.26 with a gain of 265.65 points or 1.33 per cent.
The BSE’s realty stocks led the rally with a gain of 4.27 per cent followed by healthcare and banks 1.88 per cent each, capital goods 1.86 per cent, power 1.57 per cent, information technology 1.51 per cent and oil & gas 1.40 per cent. Except consumer durables, which lost 0.36 per cent, all other sectoral indices ended in the positive territory. On the National Stock Exchange, the 50-share Nifty closed above the 6000-mark at 6007.45 with a gain of 79.05 or 1.33 per cent.
“Although the market opened in the negative today on the back of weak global cues, the upbeat data on trade deficit lifted market sentiment,” said Sanjeev Zarbade, Vice-President-Private Client Group Research, Kotak Securities.
Further, he said that comments from the Reserve Bank of India (RBI) Governor that the Indian economy should get better from hereon also boosted sentiment. “Indian equities have continued to outshine global markets in the past few days. However, risks remain in terms of continued stalemate on the U.S. budget talks and debt ceiling front. We also remain concerned on crude prices,” Mr. Zarbade added.
“In reaction to the further cut on India’s current fiscal growth projection by the IMF, the bourses were seen opening with down gap on Wednesday. However, things started improving as the day progressed, and by the end, Nifty posted gained by of nearly one-and-a-half per cent,” said Jayant Manglik, President -Retail Distribution, Religare Securities Limited.