Stock market indices posted smart recovery on Monday and the Bombay Stock Exchange (BSE) 30-share sensitive index, Sensex, closed above the psychologically important 20000-mark again following gains recorded by Reliance Industries which found huge stock of gas in the KG basin.
The Sensex soared by 326.44 points or 1.66 per cent to close at 20030.77, led by a rally in consumer durables with a gain of 3 per cent, oil and gas 2.76 per cent, metal 1.95 per cent and healthcare 1.56 per cent. All sectoral indices ended in the positive territory. Interestingly, the Sensex closed above 20000-mark even though it opened lower at 19750.67.
Meanwhile, broader indices, BSE 100 gained 1.52 per cent, BSE 200 1.49 per cent and BSE 500 1.44 per cent.
The rally was so widespread that the mid-cap and small-cap stocks moved up by 1.14 per cent and 0.79 per cent, respectively.
“The markets today [Monday] opened with a positive note and was seen trading higher supported by the heavy weight stock Reliance Industries which posted its biggest gain since September 2012 after discovering a new gas field in KG-D6 basin,” said Alex Mathews, Head Research, Geojit BNP Paribas Financial Services Ltd. Reliance Industries surged by 5.3 per cent. On the National Stock Exchange (NSE), a broader 50-share Nifty closed at 6083.15, up by 99.60 points or 1.66 per cent.
“The stock (Reliance Industries) has further scope for price appreciation after this discovery, which can lift Nifty above 6250 in the short-term. The market breath changed to positive as 1,364 stocks advanced while 981 declined,” Mr. Mathews added.
The European markets were trading higher. The U.S. future indices were trading flat. “The rally was mainly backed by Reliance Industries that has contributed around 84 points and the fundamental news was ‘significant gas condensate’ discovery in block offshore of India,” said Shrikant Chouhan, Technical Analyst, Kotak Securities.
Rupee gains 7 paise
The rupee gained against the U.S. dollar aided by gains in the domestic stock market. It closed at 55.56/57 a dollar against 55.63/64 previously.
“In our opinion, even domestic currency has played major role as in spite of opening lower to 55.7813 it recovered back to 55.55, which was its average closings of last three days. Our currency appreciated mainly due to surge in Japanese currency and our view is that it is crucially poised to rise,” said Mr. Chouhan.
