Sensex ends up 241 pts, Nifty above 8200 on FDI boosters

Moneycontrol Bureau3:30 pm Market closing: The market ended higher after a smart  rally throughout the day. The Sensex ended up 241.01 points or 0.9 percent at 26866.92, and the Nifty up 68.30 points or 0.8 percent at 8238.50. About 1381 shares have advanced, 1194 shares declined, and 193 shares are unchanged. 3:10 Gold prices: Gold prices declined by Rs 150 to Rs 29,650 per 10 grams today, mirroring a lifeless trend overseas amid slack demand from jewellers at prevailing higher levels.

Sentiment took a knock on subdued global trend where gold fell the most in almost a month as a poll showed that Britain may stay on in the European Union, hurting demand for safe haven investments, traders said.

Globally, gold lost 1.4 per cent to USD 1,280.47 an ounce, the biggest intra-day drop since May 24 in Singapore, and silver traded 0.8 per cent lower at USD 17.36 an ounce.

2:59 pm Market Update: Equity benchmarks gained further in late trade. The Sensex rallied 246.69 points or 0.93 percent to 26872.60 and the Nifty gained 69.75 points or 0.85 percent at 8239.95.About 1357 shares have advanced against 1157 declining shares on BSE.2:35 pm Europe strong: European stocks surged as declining fears of a Brexit vote buoyed global market sentiment, sterling and oil prices.

The pan-European STOXX 600 was up 2.6 percent. Global markets are reacting positively to several opinion polls over the weekend that showed that the remain camp was regaining momentum ahead of the referendum on European Union membership on Thursday.

Public opinion appears to have turned since the murder of pro-EU Labour MP Jo Cox last Thursday which led to the suspension of campaigning by both sides. However, pollsters claim that the death has had little impact on sentiment and the remain camp was always likely to gain support in the last few days running up to the vote. Campaigning has now resumed.2:20 pm Suzlon deal: Wind Turbine maker Suzlon Group today said it has entered into a pact with CLP India for a 100 mw solar project at Veltoor in Telangana.

CLP India acquired 49 percent stake in SE Solar, a special purpose vehicle (SPV) set-up by Suzlon, as per the agreement signed between CLP India and Suzlon last week.

CLP India, a subsidiary of Hong Kong-based power company CLP, has the option to acquire the remaining 51 percent in future, the company said in a statement.

The project is expected to be commissioned by May and will be funded 80 percent by debt and 20 percent by equity.

Also read - Brexit, poor monsoon may force prices up: Rakesh Jhunjhunwala2:00 pm Market Check

Equity benchmarks extended rally in afternoon trade with the Sensex rising 197.46 points to 26823.37 and the Nifty climbing 59.55 points to 8229.75 after approvals for FDI in various sectors.

The market breadth was also positive as about 1320 shares advanced against 1116 declining shares on Bombay Stock Exchange.

The government has made slew of announcements for various sectors by opening FDI. It has approved 74 percent FDI in brownfield pharma under automatic route, 100 percent in scheduled airlines & defence sectors. Dr Reddy's, Biocon Reliance Defence and Jet Airways rallied 2-8 percent.