Boisterous benchmarks showcased an enthusiastic performance on Tuesday, by rallying over one and a half percentage point amid strong global cues. Sentiments remained up-beat since start as key bourses made a gap-up opening and there appeared not even an iota of profit booking in the session as the bourses managed to fervently gain from strength to strength, as investors continued accumulating fundamentally strong stocks. Frontline indices not only ended the session near intraday high levels but also recaptured their crucial 8,900 (Nifty) and 28,900 (Sensex) bastions on hefty across the board buying. Sentiments remained up-beat on expectation of further delay in interest rate hike by the US Federal Reserve on account of slower than expected US jobs data in August. Traders also took some encouragement with report that growth in India's service industry accelerated to its fastest pace in more than 3-1/2 years in August, driven by a surge in domestic and foreign demand. The Nikkei/Markit Services Purchasing Managers' Index jumped to 54.7 in August, its highest since January 2013, from 51.9 in July. Reports that Prime Minister's Office (PMO) will soon clear projects worth Rs 20 lakh crore, too aided sentiments. Moreover, Project Monitoring Group (PMG) has already cleared 276 projects worth 10 lakh crore which were stalled due to various reasons including roads, environment, coal and power among others. Global cues too remained supportive with European counters making a positive start, while Asian markets rallied. Back home, there was broad based buying witnessed in the markets and apart from the blue chips, the broader markets too participated strongly in the rally. Markets got some support with surge in Indian rupee against the US dollar on selling of the American currency by exporters and banks amid sustained foreign fund inflows. Finally, the BSE Sensex surged 445.91 points or 1.56% to 28,978.02, while the CNX Nifty gained 133.35 points or 1.51% to 8,943.00.
Posted on : 08-09-2016