Markets finish on a robust note; Sensex zooms over 350 points

Markets finished the session on robust note led by a firm rally in the blue chip stocks amid firm Asian cues and a strong rupee.

Provisionally, the Sensex soared 350 points to close at 26,835 and the Nifty surged 102 points to end at  8,124.

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(updated at 2:40 PM)

After seven trading session of losses, markets have regained momentum with a sharp rebound in the blue chip stocks as investors accelerate buying at attractive valuations amid firm Asian cues.

Further, the sentiments lifted higher after MSCI deferred inclusion of China A stocks to its benchmark indices which had triggered the continuous outflow of funds by the foreign investors.

At 2.40PM, the 30-share Sensex was up 416 points at 26,897 and the 50-share Nifty was up 117 points at 8,139.

The rupee is quoting at 63.82 against the US dollar on the back of fresh selling of dollars by banks and exporters following a strong rebounded in the the equity market.

SUGAR STOCKS

Shares of sugar companies are trading higher after the Cabinet Committee on Economic Affairs (CCEA) approved to provide an interest-free loan worth Rs 6,000 crore to the sugar companies.

Some of the notable sugar companies include Sakhti Sugars, Bajaj Hindustan, Balrampur Chini Mills, Shree Renuka Sugars, Upper Ganges Sugar and Industries, Dhampur Sugar Mills and Oudh Sugar Mills trading higher  between 6-20% on the BSE.

KEY STOCKS

On the sectoral front, all 13 sectors are trading in the positive territory trading higher over 1% barring BSE FMCG index which is trading with marginal gains.

Engineering conglomerate L&T is trading higher over 2.4% on reports stating that the company has created a new unit to cater to smart cities which will allow the business to grow to $1 billion in the span of three to four years. Meanwhile, L&T Finance Holdings, financial services unit of engineering major L&T, is in talks to sell a minority stake to Bain Capital.

Shares of Reliance Industries are trading higher by 1.3% ahead of the Annual general meet due on Friday June 12 where Mukesh Ambani will meet its shareholders and make announcements for future growth of the company.

Bank shares extended gains after the RBI allowed banks to take control of debt-laden companies by converting loans into equity. ICICI Bank, HDFC Bank, Axis Bank and SBI are up 1-2%.

Shares of car companies including Tata Motors, Maruti Suzuki and M&M are trading higher between 1-2% on the Bombay Stock Exchange (BSE) after Society of Indian Automobile Manufactures (SIAM) reported a jump in the domestic passenger car sales segment. 

Shares of Bajaj Auto have gained 2% on back of the sales from the auto major’s two forgotten bike brands,  CT 100 and Platina.

Bharti Airtel was up 1.5% on reports that the telecom major has raised 2G and 3G rates for its pre-paid customers by 13-18%.

The broader markets are trading in tandem with the larger peers, the BSE Mid-cap and Small-cap indices are up 1.3% each.

Market breadth is strong with 1,696 gainers and 826 losers on the BSE