Sensex surges 100 points on firm global cues, favorable macro-economic data

Benchmark indices ended higher amid volatile trade, supported by firm global cues and favorable macro-economic data. However, investors have turned cautious over the likelihood of Britain leaving the European Union.

India's CAD declined sharply to $0.3 billion or 0.1% of its GDP in the fourth quarter ended March for financial year 2015-16, against $7.1 billion in the third quarter ended December 2015 which further lifted the mood.

The S&P BSE Sensex surged 100 points to close at 26,626 and the Nifty50 gained 29 points to end at 8,170 levels. Among broader markets, BSE Midcap index slipped by 0.1% whereas BSE Smallcap index was up 0.3%.  

"Supported by global markets’ rebound after being on the back foot through the week, Indian stocks opened positive. Recent domestic cues by way of aviation policy and the developments in the banking sector also embellished upside hopes. However, with several event risks ahead next, especially Yellen’s statement, as well as Brexit vote, global markets were seen reluctant to add to early gains. Moreover, the slow progress of monsoons is being increasingly viewed with a touch of concern, especially in the backdrop of prices of pulses, sugar etc. going up," adds Anand James, Chief Market Strategist, Geojit BNP Paribas Financial Services.

In overseas markets, European stocks edged higher, tracking gains in the US and Asia and underpinned by higher oil prices as worries about Brexit receded, at least for now.

Meanwhile, the Bank of England yesterday, 16 June 2016 kept its key interest rate at a record low of 0.5% and made no changes to its 375-billion-pound ($530 billion) asset-purchase program.

Most Asian stocks edged higher after a rebound on Wall Street overnight ahead of the UK's upcoming 23 June 2016 referendum vote on its future within the European Union.

Meanwhile, Japan's government kept its assessment of the economy unchanged this month but warned that consumer prices are rising at a slower pace, casting more doubt on policymakers' three-year effort to shake off deflation.

Back home, markets regulator Securities and Exchange Board of India (Sebi) has confirmed its interim order banning 112 entities for tax evasion and money laundering besides misusing stock exchange mechanism, while a detailed investigation is on against several others.

Among stocks, real estate companies rose in the range of 3%-7% on the BSE ahead of the Securities and Exchange Board of India (Sebi) board meeting on Friday to make further relaxations to rules governing real estate investment trusts (Reits).

Zandu Realty, SSPDL, Sunteck Realty, Kolte Patil Developers, Sobha and Housing Development Infrastructure surged between 5%-11%.

Shares of sugar companies were under pressure with most of the stocks trading lower by up to 10% after the government imposed 20% customs duty on sugar exports to boost domestic supply and ensure that traders don’t ship out sugar to take advantage of favourable international markets.

Tata Motors-owned Jaguar Land Rover on Wednesday opened a new £750-million (Rs 2,400 crore) manufacturing facility and Education Business Partnership Centre in the state of Rio de Janeiro, Brazil, even as apprehensions are raised over the UK’s future in the European Union. Shares of Tata Motors were up 2%.

Coal India rose almost 2% on expectations of pick up in coal demand after coal secretary Anil Swarup appealed to state-owned power generation firms to immediately stop imports of the fuel and instead buy coal from Coal India.

Shares of Max Financial Services soared 20% to touch its highest trading permissible limit of the day as the company and Max Life Insurance will merge into HDFC Standard Life Insurance.

Bharti Infatel was down 3% on the BSE, extending its past two day's 8.4% fall, after the stock turned ex-date for buyback of shares on June 15.

V-Guard Industries rallied 6% after the company announced that its board approved the proposal for splitting of equity shares in the ration of 1:10.