Business

Market rallies for 2nd straight day, Sensex above 32,000 (Ld)

Mumbai, May 28 (IANS) The Indian equity market surged for the second consecutive day with the BSE Sensex closing above the 32,000 mark.

Positive global cues, inflow of foreign institutional investments (FII) along with healthy buying in auto, capital goods and financial stocks pushed the indices higher, analysts said.

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Net inflow of FIIs on Thursday stood at Rs 2,354.14 crore and that of domestic institutional investors (DII) was Rs 144.83 crore.

Rahul Sharma, Research Head at Equity99 Advisors said: “Ahead of derivative expiry today, traders were seen covering short positions in technology, banking and auto stock saw the market ending higher for the second consecutive day. Today, FPI were also buyers in select banking and telecom stock. On the other hand, high-net worth investors were seen bargain-hunting in select beaten-down stocks.”

He further said that at the end of the trading session, most long-positions were rolled over by traders to June 2020 contracts.

According to Siddhartha Khemka, Head of Retail Research at Motilal Oswal Financial Services, investor sentiments were positive on the back of continued resumption of economic activities in the country and expectation of further stimulus announcement by the government.

Global markets were buoyant on optimism that economic activity is gathering steam and authorities across countries may offer more stimulus to bolster the recovery, he said, adding hopes for potential COVID-19 vaccines under development also kept the sentiments positive, he added.

Deepak Jasani, Head of Retail Research at HDFC Securities noted that the major Asian markets have closed on a mixed note while European indices like the FTSE, CAC and DAX ended higher.

Asian markets were largely subdued due to the US-China tensions.

On the technical front, Jasani said: “Technically, with the Nifty moving up further after breaking out of the highs of 9,179 yesterday, the bulls seem to be in control. Further upsides are likely in the coming sessions. Short-term support is now at 9,338.”

The Nifty50 on the National Stock Exchange settled at 9,490.10, higher by 175.15 points or 1.88 per cent from its previous close.

The Sensex closed at 32,200.59, higher by 595.37 points or 1.88 per cent from the previous close of 31,605.22. It had opened at 31,827.80 and touched a intra-day high of 32,267.23 and a low of 31,641.77.

–IANS

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