Sensex hits 3-month high on favourable monsoon forecast, improving economy
Mumbai: Market benchmark sensex was trading at over three-month highs in late Wednesday morning deals after zooming 412.71 points while the broader NSE Nifty recaptured the 7,800-level, led by buying in banking and auto stocks on likely "above normal" monsoon and bullish macroeconomic data.
Besides, a firming trend in other Asian markets, tracking rallies in the US and Europe as oil prices rising to 2016 highs on reports of Russia-Saudi Arabia agreement to freeze output, buoyed sentiment.
Brokers said buying picked up on positive macroeconomic data as industrial production expanding at 2 per cent year-on-year in February after staying negative for the last three months on better performance of mining, power and consumer goods. The sensex resumed higher at 25,358.42 and moved in a range of 25,579.17 to 25,358.42 before quoting 25,558.30 at 1100 hrs, showing a gain of 412.71 points or 1.64 per cent.
This is the highest intra-day level for the index since January 6.
The NSE 50-share Nifty was also up 123.90 points or 1.61 per cent to quote 7,832.85.
Major gainers were, M&M 6.39 per cent, ICICI bank 4.68 per cent, Bharti Airtel 2.92 per cent, Wipro 2.78 per cent, Tata Motors 2.76 per cent, HUL 2.22 per cent and Maruti Suzuki 2.19 per cent.
The Met office on Tuesday predicted that after two consecutive droughts, the country will receive "above normal" monsoon with a fair distribution of rainfall across major parts of country and it will be a "good year", easing fears of struggling farmers.
Meanwhile, foreign portfolio investors (FPIs) bought shares worth Rs 307.72 crore on Tuesday, as per provisional data.
Overseas, Asian market gained as rising crude prices buoyed energy producers and a weaker Japanese currency boosted shares in Tokyo.