Sensex climbs 300 points on positive economic data

Mumbai: The BSE benchmark Sensex reclaimed the 38,000-mark by surging over 300 points in opening trade on Friday on heavy buying by domestic institutional investors as the industrial production grew at 6.6 per cent in July and retail inflation cooled to a 10-month low.

The 30-share barometer pushed higher by 318.85 points, or 0.85 per cent, to 38,036.81. The gauge had risen 304.83 points in the previous session on Wednesday.

Sectoral indices were green across the board, with metal, power, PSU, realty and oil and gas stocks posting sizeable gains of up to 1.66 per cent. The NSE index Nifty was trading above the 11,400-mark, up 84.90 points, or 0.75 per cent, at 11,454.80.

Buying activity picked momentum after data released by Central Statistics Office (CSO) on Wednesday showed that industrial production grew at 6.6 per cent in July, while retail inflation cooled to a 10-month low of 3.69 per cent in August.

The rupee's recovery by 50 paise to 71.68 against the dollar in early trade on the government's assurance that all steps would be taken to ensure the domestic currency does not depreciate to unreasonable levels also added to the momentum.

PowerGrid, emerged



top gainer in the Sensex pack, rising 3 per cent, followed by Yes Bank at 2.11 per cent.

Other big gainers that lifted both the key indices were Maruti Suzuki, Sun Pharma, Vedanta, SBI, Adani Ports, IndusInd Bank, ONGC, NTPC, ICICI Banak, Coal India and Tata Steel.

However, stocks of software exporters such as Wipro, Infosys and TCS were under pressure after the rupee continued its recovery against the dollar.

Domestic institutional investors (DIIs) remained net buyers, picking up shares worth a net of Rs 541.44 crore on Wednesday.

However, foreign portfolio investors (FPIs) gave up shares worth a net of Rs 1,086.39 crore, provisional data showed. Stock exchanges remained closed Thursday on account of Ganesh Chaturthi.

Most other Asian markets too were in a better shape, tracking positive cues from Wall Street on optimism over China-US trade talks. Hong Kong's Hang Seng rose 0.79 per cent, while Japan's Nikkei was up 0.97 per cent in their early deals. Shanghai Composite Index, however, was down 0.26 per cent.

The US Dow Jones Industrial Average had closed 0.57 per cent higher on Thursday.