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Markets ended at fresh record highs on Wednesday as institutional investors bought stocks across the board on hopes that the Finance Minister would announce reforms to boost the economy.
Finance Minister Arun Jaitley on Tuesday hinted at taking bold measures by discarding populism to curtail wasteful expenditure and making "reasonable" tax policies for reviving economic growth.
The S&P BSE Sensex gained 325 points or 1.2% at 25,841.21 while CNX Nifty surged 90 points or 1.1% at 7,725.15.
Investors also cheered strong dollar inflow by foreign portfolio investors (FPIs) that has helped the rupee gain along with positive global cues and advancing monsoon.
Moreover, broader markets also edged higher as BSE Mid-cap index ended higher by nearly 0.8% and BSE Small-cap index surged over 1%.
The market breadth on the BSE ended firm as 1,908 shares advanced and 1,156 shares declined.
As per provisional data from the stock exchanges, FPIs bought shares worth a net Rs 856.35 crore on Tuesday, 1 July 2014
Rupee
The rupee is trading at 59.73/74 versus its close of 60.07/08 on Wednesday after hitting 59.6650, its strongest level since June 13 on the back of heavy dollar-selling by custodian banks and some local corporates.
Global Markets
European shares edged higher on Wednesday, following fresh highs in U.S. markets and a three-year peak for Asian stocks, though dashed hopes for deal-making in the French telecoms sector kept a lid on gains.
The pan-European FTSEurofirst 300 index was up 0.2% at 1,384.89, with benchmark indices in Germany, UK and Italy all in positive territory.
Meanwhile, MSCI's broadest index of Asia-Pacific shares outside Japan gained 1%. Japan's Nikkei added 0.3% and notched up its loftiest level in more than five months.
Sectors and Stocks
All the sectoral indices ended in the positive zone.
BSE Metal Index gained over 2% followed by counters like Auto, Capital Goods, Power, Healthcare, Consumer Durables, Banks, all surged over 1-2% while Realty and Oil & Gas gained over 0.3-1%.
Sectors like Capital Goods, Auto, Heathcare and Consumer Durables touched 52-week high today.
Shares of metal companies extended yestersday’s gains amid positive China June PMI data that hinted expansion in manufacturing sector at the fastest pace.
Sesa Sterlite was the top Sensex gainer and the scrip surged over 4%.
Among other metal shares, Hindalco, Coal India and Tata Steel gained between 2-3%.
Shares of automobile companies also extended yesterday’s profits on the back of strong demand.
Maruti Suzuki, M&M, Hero Moto, Bajaj Auto and Tata Motors surged between 1-3%. Bajaj Auto today reported 3% increase in motorcycle sales at 2,62,202 units in June 2014.
Moreover, scrips of financial companies rose over renewed buying with HDFC twins, ICICI Bank and SBI gained between 1-2.5%.
In the capital goods space, L&T surged nearly 2% after the company said it has won new orders worth of Rs 2,002 crore across various business segments in June 2014 while BHEL edged higher by nearly 3%.
Other notable gainers included NTPC, Cipla, Sun Pharma, Dr Reddy’s Lab and RIL, gained between 1-3%.
Other Shares:
Shares of Adani Group companies were into limelight and ended higher by up to 10% on back of heavy volumes.
All three listed entities – Adani Enterprises, Adani Ports and Special Economic Zone (SEZ) and Adani Power gained 4-10% on NSE.
Gujarat Gas Company zoomed over 8% after Gujarat Finance Minister Saurabh Patel announced that the above mentioned company and Gujarat State Petroleum Corporation (GSPC) will be merged this year.
A2Z Maintenance & Engineering Services surged 5% to Rs 20 on BSE after the company bagged orders worth nearly Rs 2400 crores.
Sasken Communication Technologies zoomed 13% after winning an arbitration award of $31.7 million from US-based Spreadtrum Communications Inc.
