Positive macro-data, rupee lift equity markets to new highs (Roundup)

Indian equity markets on Monday closed at record high levels as positive domestic macro-economic data and a strong rupee cheered investors.

The wider 51-scrip Nifty of the National Stock Exchange (NSE) rose by 44.95 points or 0.48 per cent to 9,445.85 points -- a new closing high.

The barometer 30-scrip Sensitive Index (Sensex) of the BSE closed at a new high of 30,322.12 points -- up 133.97 points or 0.44 per cent from its previous close at 30,188.15 points.

On May 11, the NSE Nifty had recorded a closing high of 9,422.40 points and the BSE Sensex of 30,250.98 points.

In terms of the broader markets, the S&P BSE mid-cap index surged by 1.25 per cent and the small-cap index by 0.78 per cent.

"Markets surged higher on Monday after taking a breather last Friday. Hopes of an interest rate cut by the Reserve Bank of India at its forthcoming meet on June 7 after the latest data showed a sharp fall in headline retail inflation boosted sentiments on the domestic bourses," Deepak Jasani, Head (Retail Research), HDFC Securities, told IANS.

"The markets reacted positively to the macro-data released on Friday evening (March IIP, April WPI and April CPI). Metal stocks gained sharply as copper prices rose in the global commodity markets."

Official data on Wholesale Price Index (WPI) and Consumer Price Index (CPI) released after market hours on Friday showed that inflation eased in April. The data on annual rate of inflation was calculated on a revised base year of 2011-12.

However, the factory output growth slowed to 2.7 per cent in March on the back of poor manufacturing performance in the new Index of Industrial Production (IIP) with revised base year of 2011-12.

Anand James, Chief Market Strategist of Geojit Financial Services, said: "Consumer goods sector gave impetus to the market in the opening hours on the backdrop of a positive inflation data and IMD's (India Meteorological Department) comment on monsoon arrival at the Andaman and Nicobar Islands ahead of anticipation."

"But the concerns on cyber security kept risk-appetite on a leash capping gains."

In investments, provisional data with the exchanges showed that foreign institutional investors (FIIs) purchased stocks worth Rs 235.33 crore, while domestic institutional investors (DIIs) divested scrip worth Rs 65.77 crore.

Dhruv Desai, Director and Chief Operating Officer of Tradebulls, said sentiments got a boost from positive macro-economic data and appreciation of the rupee against the US dollar in intra-day session.

On the currency front, the rupee strengthened by 24 paise to 64.06 per US dollar from its previous close of 64.30.

"Banking sector stocks traded with firm sentiments throughout the session on strong buying support, while auto and pharma sector stocks complemented the firmness of the equity market"," Desai told IANS.

Sectorwise, the S&P BSE metal index augmented by 265 points, the banking index by 210.87 points, and the healthcare index by 158.42 points.

On the other hand, the S&P IT index fell by 40.78 points, the Teck (technology, media and entertainment) index by 26.23 points and the consumer durables index by 12.57 points.

Major Sensex gainers on Monday were: Tata Steel, up 4.35 per cent at Rs 455.75; Dr. Reddy's Lab, up 3.54 per cent at Rs 2,676.15; Lupin, up 2.40 per cent at Rs 1,284.25; ICICI Bank, up 1.82 per cent at Rs 302.05, and Asian Paints, up 1.32 per cent at Rs 1,147.25.

Major Sensex losers were: Infosys, down 1.24 per cent at Rs 951.95; Hero MotoCorp, down 0.90 per cent at Rs 3,505.10; Reliance Industries, down 0.53 per cent at Rs 1,343.65; Adani Ports, down 0.53 per cent at Rs 355.25; and Axis Bank, down 0.52 per cent at Rs 500.

--IANS

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