Rising global stocks had a rub-off on Indian market today as the Sensex surged by about 241 points, with Brexit fears slowly starting to subside amid the June derivatives expiry. This was the fourth straight day that the Sensex brought up gains.
The rupee’s improving fortunes against the dollar buoyed mood too. Short-covering by participants with today being the last trading session of the June series of derivative contracts supported the upmove.
Yesterday, a string of economy-boosting policy decisions taken by the Cabinet, including approval to 7th pay panel recommendations, also brought back investors from the sidelines.
Sentiment was bolstered on hopes that the long-awaited GST Bill may be passed in the upcoming monsoon session of Parliament. The 30-share index was trading higher by 240.72 points, or 0.90 per cent, at 26,981.11. The gauge had gained 342.68 points in the previous three sessions.
All the sectoral indices led by metal, auto, realty and banking were in the positive zone, rising up to 1.05 per cent. The NSE Nifty rose 64.60 points, or 0.78 per cent, to 8,268.60.
As worries about Britain’s vote to exit the European Union and its impact on the global economy abated, a firm trend in Asia tracking overnight gains in Europe and the US influenced sentiment, brokers said.
London share prices surged, wiping out post-Brexit losses. On Wednesday, London’s benchmark FTSE 100 closed 3.58 per cent higher, which is above its level on the day of Brexit referendum.Globally, Japan’s Nikkei moved up by 0.82 per cent while Hong Kong’s Hang Seng gained 1.73 per cent in early trade.
The US Dow Jones Industrial Average ended 1.64 per cent higher yesterday.