The BSE Sensex marched higher for the second straight day on June 26 on robust buying in metal, power and financial stocks ahead of June derivatives expiry.
Overcoming a choppy start, the 30-share index finished 157.14 points, or 0.40%, higher at 39,592.08. Similarly, the broader NSE Nifty jumped 51.10 points, or 0.43%, to 11,847.55.
Buying interest was seen in metal, power, healthcare, capital goods and financial counters ahead of the expiry of June futures and options (F&O) contracts scheduled for June 27, traders said.
Sentiment also received a boost after the U.S. administration said a trade deal with China is “about 90%” complete.
Besides, domestic investors are hoping for positive news on the U.S.-India trade front in the backdrop of U.S. Secretary of State Mike Pompeo holding talks with Prime Minister Narendra Modi in New Delhi, traders added. Mr. Modi and U.S. President Donald Trump are scheduled to meet on the sidelines of the G20 Summit in Osaka, Japan, later this week.
NEW DELHI:SENSEX DC: PTI GRAPHICS(PTI6_26_2019_001017B)
The progress of monsoon and a strengthening rupee added to the buying momentum.
Vedanta was the biggest gainer in the Sensex pack, spurting 4.40%. PowerGrid, Sun Pharma, Yes Bank, Tata Steel, HDFC Bank, Bajaj Finance, ICICI Bank and Bajaj Auto too ended up to 4.12% higher.
On the other hand, Infosys, IndusInd Bank, Tech Mahindra, Bharti Airtel, Maruti, TCS and HDFC were among the top losers, shedding up to 1.12%.
“Indian market bounced higher led by pharma and banking sector due to positive view for Q1 FY20 result given a low base and improvement in business outlook. Metals also inched higher due to ease in trade war tensions.
“Expectation over Budget and Q1 FY20 (results) will control the trend of the market,” said Vinod Nair, Head of Research, Geojit Financial Services.
Sectorally, BSE metal, power, utilities, basic materials, realty, healthcare, bankex and finance ended up to 2.88% higher.
IT, teck, telecom and FMCG shed up to 0.65%.
The broader BSE midcap and smallcap indices outperformed the benchmarks, rising up to 0.85%.
On the currency front, the Indian rupee appreciated 22 paise to 69.13 against the U.S. dollar intra-day.
On a net basis, foreign institutional investors bought equities worth ₹1,157.87 crore on June 25, and domestic institutional investors purchased shares to the tune of ₹377.22 crore, provisional data available with stock exchanges showed.
Brent crude futures, the global oil benchmark, rose 1.17% to $65.03 per barrel.
Globally, while bourses in Shanghai, Hong Kong, Tokyo and Seoul ended on a mixed note, equity markets in Europe were trading in the green in early deals.
