Normal monsoon bet, FY18 earnings cheer boost markets: Sensex logs 9th straight gain, Nifty nears 10,550

image During the day, the benchmark Sensex shuttled between the range of 34,434.14 and 34,229.83. (Image: Wikimedia Commons)

Indian stock markets closed higher on Monday with Sensex and Nifty finishing higher for the ninth straight session as investors seemed to have turned optimistic over the corporate earnings for the fiscal year 2018 and the normal monsoon forecast further uplifted the sentiments. BSE Sensex rose 89.63 points to end at 34,395.06 and NSE Nifty added 20.35 points to conclude at 10,548.7 on Tuesday. This is the longest winning run since September 2014. Shares of Power Grid, NTPC, HUL, ICICI Bank, ITC, Bharti Airtel, M&M and HDFC emerged as the top gainers among the components of BSE Sensex on Tuesday.

“Sentiments remained upbeat after the Meteorological Department yesterday forecast that the country will receive “normal” monsoon rainfall this year, raising hopes of higher farm output and a boost for the rain-dependent rural economy,” PTI said in a report citing unidentified brokers. During the day, the benchmark Sensex shuttled between the range of 34,434.14 and 34,229.83.

The domestic markets were trading in negative territory up until the mid-morning trades but shares of heavyweight companies such as HDFC, HDFC Bank, ITC, ICICI Bank and Reliance Industries came to the rescue contributing heavily in the Sensex upsurge. Collectively these five shares alone added about 141 points to the Sensex while, on the other hand, a decline in shares of Axis Bank, Infosys, L&T, Maruti Suzuki wiped off 54 points out of the index.

Among the ‘A’ group shares of BSE, stocks of DCB Bank, South Indian Bank, Bajaj Electricals, Indian Hotels and Godrej Properties surged 5 to 7% whereas Welspun India, Kwality, Rain, Vakrangee and Fortis Healthcare plunged 3 to 5% on Tuesday.

Global shares were mixed Tuesday, with steady China economic growth data supporting sentiment despite simmering trade tensions between China and the US, Associated Press said in a report. Japan’s benchmark Nikkei gained 0.1% to 21,847.59, South Korea’s Kospi lost 0.2% to 2,453.77, Hong Kong’s Hang Seng dropped 0.9% to 30,059.32 and China’s Shanghai Composite declined 1.4% to 3,066.8 even after strong GDP data.

Source: Financial Express