Sensex jumps 240 pts; reclaims 28k-mark after over 2 months

Mumbai, July 1

Benchmark BSE Sensex surged 240 points on across-the-board buying to close at to close at 28,020.87 on Wednesday, regaining the 28,000-mark after over two months after government-promised capital support to PSU banks and improved macroeconomic data boosted market sentiments.

Moreover, a firming trend in global markets after Greek PM Alexis Tsipras was reportedly prepared to accept creditors' demands for a bailout buoyed sentiments, equity brokers said.

"It seems that the confidence in Indian markets has improved and its outperformance continues to be strong. On Wednesday, with news that Greece will accept the bailout, India rallied ahead," said Vinod Nair, head of Fundamental Research at Geojit BNP Paribas Financial.

Shares of capital goods, banking, power, realty, auto, IT and teck sectors firmed up on good buying enquiries.

The 30-share index, which had gained 135 points in the previous session, it hit the session's high of 28,099.25 and a low of 27,799.91.

Sensex had last ended at 28,442.10 on April 17.

The 50-share NSE Nifty also regained the 8,400-mark by climbing 84.55 points or 1.01 per cent to 8,453.05.

The index had ended at nearly 2-1/2 months high at 8,453.05, disclosing a gain of 84.35 points or 1.01 per cent.

Sentiments got a lift after output of eight infrastructure sectors expanded 4.4 per cent in May, the highest growth rate in the past six months, they said.

Global cues were also positive on signs that Greece was ready to accept creditors' proposals to end a standoff over a bailout, influenced sentiment.

Banking stocks gained after government said it is examining the funds requirement of public sector banks over three years and promised required capital support as part of a comprehensive package to strengthen them.

State-run SBI surged 1.83 per cent, while private lenders such as ICICI Bank gained 1.35 per cent, Axis Bank jumped 3.60 per cent on BSE.

Globally, Asian and European stocks edged higher as investors appeared to take developments in the Greek debt crisis in stride.

Key indices in Germany, France and the UK were up 1.76 per cent to 3.15 per cent.

Pramit Brahmbhatt, Veracity Group CEO said: "Local indices continued to trade higher on the investors' confidence and again closed on a positive note. Though the overall sentiment remained weak in the market because of continued concern about the Greek default."

Key equity benchmark indices from Asia, including Japan, South Korea, Singapore and Taiwan were up 0.14 per cent to 1.14 per cent, while China's index fell by 5.23 per cent. The Hong Kong's stock market was closed today.

Out of 30-share Sensex pack, 23 ended higher.

Major gainers were BHEL (3.67 pc), Axis Bank (3.60 pc), Cipla (2.75 pc), Tata Motors (2.36 pc), SBI (1.83 pc), TCS (1.54 pc), L&T (1.52 pc), Wipro (1.51 pc), ICICI bank (1.35 pc), ONGC (1.31 pc), Infosys (1.25 pc), Vedanta (1.15 pc) and Bharti Airtel (1.10 pc).

Among the BSE sectoral indices, capital goods rose 1.69 per cent, power 1.64 per cent, bankex 1.63 per cent, IT 1.48 per cent, realty 1.48 per cent, auto 1.33 per cent and teck 1.27 per cent.

Small-cap and mid-cap indices also rose by 1.45 per cent and 1.30 per cent, respectively.

The market breadth remained positive as 1,889 stocks ended in green, 877 closed in red and 116 ruled steady.

Total turnover rose further to Rs 3,226.25 crore from Rs 2,719.86 crore on Tuesday. PTI