Stock indices surged on bourses on Monday, while rupee rebounded in the foreign exchange market, as Iran struck a nuclear deal with world powers, which is expected to reduce oil prices substantially.
The Bombay Stock Exchange (BSE) 30-share Sensitive Index (Sensex) closed at 20605.08 with a gain of 387.69 points or 1.92 per cent.
The rally was led by capital goods stocks which gained 3.82 per cent, followed by banks (3.63 per cent), realty (2.28 per cent), PSU (2.26 per cent), FMCG (2.10 per cent) and automobile (2.05 per cent). Except BSE IT which lost marginally all other sectoral indices ended in the positive territory.
Stocks of oil marketing companies such as HPCL, BPCL and IOC surged three to seven per cent. Among broader indices BSE 100 gained 1.94 per cent while BSE 200 was up 1.82 per cent.
On the National Stock Exchange (NSE), the 50-share Nifty gained 119.90 points or 2 per cent to close at 6115.35.
“Strong rebound was seen in the benchmark indices after three successive negative sessions. Sentiment was up on E&Y’s report that India has emerged as the most attractive investment destination, due to relaxation in FDI norms. Besides, positive news on Iran to limit its nuclear programme fuelled the rally across the globe as this would ease oil prices and help to curb the inflationary pressure,” said Jayant Manglik, President, Retail distribution, Religare Securities.
Meanwhile the rupee closed at 62.50 against the dollar as compared to its previous close of 62.87 on Friday. It touched a low of 62.70 and a high of 62.44 during the trading session.
“The rupee strengthened while bonds prices firmed up. Global cues were also positive,” said Sanjeev Zarbade, Vice President- Private Client Group Research, Kotak Securities. Iran and six world powers reached a breakthrough deal early on Sunday to curb Tehran's nuclear programme in exchange for limited sanctions relief.