RIL Spurs Rally On Dalal St

While sustained buying from FIIs and better results from RIL also boosted the investor sentiment. A weakening dollar and inflationary pressure in the US may attract FIIs into the domestic market, said Vinod Nair, head (research), Geojit Investments Ltd

Mumbai: Benchmark BSE Sensex soared by 1,006 points to close above 80,000 level on Monday as a sharp rally in Reliance Industries (RIL) and private banks, and foreign fund inflows helped stock markets cut short two days of fall amid India-Pakistan border tensions. The 30-share BSE Sensex jumped 1,005.84 points or 1.27 per cent to settle at 80,218.37 with 23 of its constituents ending with gains and seven in the red. During the day, it surged 1,109.35 points or 1.40 per cent to 80,321.88. The NSE Nifty rallied 289.15 points or 1.20 per cent to close at 24,328.50. All key sectors, barring IT, participated in the rally, with pharma, energy, and auto emerging as the top gainers. Reliance Industries surged by 5.27 per cent to emerge as the biggest gainer among Sensex stocks.

“The domestic market recouped from the losses incurred during the last two days of the previous week, which stemmed from the border tensions. While sustained buying from FIIs and better results from RIL also boosted the investor sentiment. A weakening dollar and inflationary pressure in the US may attract FIIs into the domestic market,” said Vinod Nair, head (research), Geojit Investments Ltd. The BSE midcap gauge jumped 1.34 per cent and smallcap index climbed 0.39 per cent.

“The absence of any major geopolitical developments between India and Pakistan over the weekend, along with stability in global markets, eased pressure and triggered an upbeat start. Additionally, strength in index heavyweight Reliance, following its results, further supported the move as the session progressed,” added Ajit Mishra, Sr V-P (research), Religare Broking Ltd.

Among BSE sectoral indices, energy jumped 3.02 per cent, oil & gas (2.90%), capital goods (1.93%), healthcare (1.60%), metal (1.59%), bankex (1.53%) and realty (1.41%). IT and BSE Focused IT were the laggards. The oil-to-retail behemoth reported a 2.4 per cent rise in March quarter net profit beating street estimates. Mahindra & Mahindra spurted 2.29 per cent after the auto major announced a Rs 555-crore acquisition of SML Isuzu and said that the buyout was a strong strategic fit for the company that would put it in a strong position.