Moneycontrol Bureau
Equity benchmarks logged their biggest single day gain in 28 months, as India joined the ongoing party in emerging markets.
The Sensex jumped 490 points to close at 20212.96, after touching a 28-month high of 20241.96 intra-day. The Nifty touched a 28-month high of 6157.10 intra-day before settling at 6146.75, up 151 points over the previous close.
Interest rate sensitive sectors like realty, banking, capital goods and auto led the powerful rally, as foreign investors chased risk assets across the globe. All BSE sectoral indices ended in green.
MUST READ: Nifty rally valuation-driven; profit booking seen, says Religare Bank Nifty closed at highest levels since November 2010. All 12 banking stocks comprising the Bank Nifty closed between 2 to 7 percent gains.
Shares of IT companies failed to participate in today's rally on concerns of visa.
Some experts cautioned that this was purely a liquidity-driven rally and was susceptible to a reversal in case flows suddenly reversed.
"Unless things materially improve on earnings, we will see probably just a liquidity-driven rally, which will look for profit booking opportunities at any point in time,” Tirthankar Patnaik of Religare Capital Markets said in an interview to CNBC-TV18.
“If you see overall, this is not an India-specific story. This is an emerging market story and the capital flows have gone to all markets,” he said.
The steady decline in wholesale and consumer price indices has raised hopes of a further reduction in interest rates when the RBI reviews its monetary policy in June. RBI said low inflation numbers will be taken into account in its next monetary policy on June 17.
CHART CHECK: Darashaw says 6138 key for Nifty; banks at selling pointPunjab National Bank, HDFC, DLF, IndusInd Bank, Reliance Infra, M&M, SBI and ICICI Bank were the big gainers in the Nifty, rising between 3 to 7 percent.
Only 3 stocks in the Nifty 50 ended in red. Power Grid Corp, Cairn India and UltraTech Cement closed marginally in red.
The most active shares on NSE were SBI, HDFC, ICICI Bank, United Spirits and ITC.
In latest development, Suzuki has initiated realignment of its auto business in India. According to CNBC-TV18 sources, as part of Suzuki's move to enhance group synergy, both Maruti and Suzuki Motorcycles will initiate operational synergies.
Heavyweights like HDFC, Bajaj Finance, HDFC Bank, Kotak Mahindra Bank, Lupin, MRF, Mahindra & Mahindra, Glaxosmithkline Consumer, Eicher Motors, Zee Entertainment, Apollo Hospitals, IPCA Labs, Indusind Bank, Glenmark Pharma, Maruti Suzuki, Reliance Communications, Maruti Suzuki and Yes Bank closed at fresh year highs today.
The total turnover for the day was Rs 218568.42 crore. NSE Cash - Rs 12880.36 crore, NSE F&O - Rs 186395.59 crore, BSE Cash Rs 2274 crore, BSE F&O - Rs 17018.47 crore.
Indian Rupee closed at 54.78 to the dollar versus 54.81 on Tuesday.
As per provisional data, Foreign Institutional Investors (FII) bought shares worth Rs 1646.95 crore in equities today while DIIs sold Rs 747.11 Cr worth of equity shares.
F&O BuzzersNifty 6400 Call: 30 lakh shares added in open interest.
Nifty 6200 Put: 20 lakh shares added in open interest.
Nifty 6100 Put: 24 lakh shares added in open interest.
Bank Nifty: Open Interest up 14%, huge buying seen in Bank Nifty
Fresh buying was seen in Kotak Mahindra Bank (Open Interest up 13%), UCO Bank (Open Interest up 40%), Unitech (Open Interest up 10%) and Lupin (Open Interest up 19%).
