Wednesday, 13 April 2016

MONSOON MANIA IN MARKET…HAPPY BULLS MADE TRADERS HAPPY

Extending gains for the third consecutive session, the  Sensex jumped 481 points to end above its crucial psychological level of 25000, while broader  Nifty reclaimed its key 7850-mark. Market breadth turned fairly positive with 28 of the 30 Sensex components ending the day in green.  Monsoon has a charm of its own. Even before the sky can get overcast, the Indian equity market extended its winning streak to the fourth consecutive trading session after forecast of above normal rains during the upcoming monsoon season lifted sentiment . The auto, banking, realty and metals stocks led the rally, which saw the Nifty end at its highest closing level since January1, 2016. FMCG, oil & gas, power and industrial were among the other major gainers. Even the mid-cap and small-cap stocks participated in today’s upswing. 
Mahindra & Mahindra was the best performer on both the benchmark indices and gained over 7 per cent.Meanwhile, gains were also supported as surprisingly upbeat Chinese trade data offered hopes the Asian giant was finally stabilising, sending the MSCI's broadest index of Asia-Pacific shares outside Japan up 1.5 percent. Back home, the much awaited fourth quarter earnings season will kick off on Friday with Infosys results.. The key factors to watch out for will be revenue and margin guidance for FY17. The stock lost 0.9 percent.This strong momentum helped the Sensex recovered more than 3100 points and Nifty over 1000 points from 2016 lows of 22494.61 and 6825.80 (hit on February 29), respectively. Meanwhile, March retail inflation, as measured by the consumer price index (CPI), fell to 4.83 percent, compared to economists' forecast of 5.05 percent while industrial output in February rose to 2 percent compared to expectations of 1.5 percent. Fall in CPI raised hopes for further rate cut by the Reserve Bank of India. The market will remain shut on Thursday for Dr Baba Saheb Ambedkar Jayanti and Friday for Ram Navami holiday.

 



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