Sensex surges 104 points on Budget hopes
The benchmark BSE Sensex spurted by nearly 104 points in early trade on Tuesday on sustained fund inflows on hopes of strong economic measures in the upcoming Union Budget. The 30-share Sensex zoomed by 103.87 points, or 0.41 per cent, to trade at 25,517.65 with metals, realty, PSU and oil and gas sector stocks leading the rise.
The gauge had rallied by over 351.11 points in the past two sessions. On the similar lines, the 50-share NSE Nifty also gained 28.15 points, or 0.37 per cent, to 7,639.50. Buying activity picked up in oil marketing company stocks following a hike in petrol and diesel prices as the crisis in Iraq spooked international oil and currency markets.
HPCL rose 0.99 per cent to Rs. 420.05, BPCL up 0.51 per cent to Rs. 602.40 and Indian Oil Corp up by 1.64 per cent to Rs. 350.80. Brokers said sentiments remained bullish following sustained capital inflows by foreign funds and widespread buying by retail investors on optimism over the first Budget of the Narendra Modi-led government.
Stocks of power, capital goods, infrastructure and banking sectors continued to remain buyers’ fancy on hopes of strong reforms for these sectors in the forthcoming Budget. Further, a firming trend in other Asian markets after data showed Chinese manufacturing activity picking up last month buoyed the trading sentiments here, they said.
Among other Asian markets, Japan’s Nikkei gained 1.35 per cent in early trade on Tuesday, while financial markets in Hong Kong are closed for public holiday. The U.S. Dow Jones Industrial Average ended 0.15 per cent lower in Monday’s trade.