Mumbai: The equity markets witnessed one of their biggest single day gains in 2018 with both the Sensex and Nifty clocking an impressive gains of over 2 per cent amidst broad-based buying in index heavyweights.
According to market participants, a better than expected quarterly numbers from private sector lender ICICI Bank, the resolution of Essar Steel insolvency case and a $75 billion bilateral currency swap agreement between India and Japan to ensure foreign exchange stability boosted investor sentiments.
The Sensex reclaimed the crucial 34,000 level mark on Monday soaring 718.09 points or 2.15 per cent to end the session at 34,067.40. On the other hand, the Nifty managed to end the session at 10,250.85, up 220.85 points or 2.20 per cent. ICICI bank was the bigger gainer up 10.82 per cent followed by SBI, which jumped 8.04 per cent.
“On the macro front, India’s exports rose by 9.8 per cent, in financial year 2017-18, which is the highest rate of growth in six years. This positive growth in exports has taken place at a time when there are a lot of negative headwinds globally. Responding to it, market participants resorted to fresh buying of domestic equities,” said Abhijeet Dey, senior fund manager, equities, BNP Paribas Mutual Fund.
However, others believe that the impressive gains registered on Monday were just a relief rally, which is likely to extend further as the markets are in an oversold territory. Foreign portfolio investors (FPIs) took the opportunity to offload shares at higher levels.
According to the data available with the stock exchanges, FPIs sold equities worth Rs 2,230.79 crore.
“Finally, the much awaited hope rally was seen in the market, which brought back the wide smile on traders’/investors’ fraternity. Such relief move was overdue since last few days and it now seems that the bounce back may extend further,” said Sameet Chavan, derivative analyst at Angel Broking.
The broader markets also participated in the rally with 1,815 stocks advancing as against 775 stocks that declined helping the BSE mid cap index to register strong gains of 2.80 per cent.
