Sensex ends above 20K-mark after 7 weeks, firms up by 76 pts

[1]

Mumbai: The benchmark S&P BSE Sensex erased early losses and gained for the third consecutive day, climbing above the 20,000 level after seven weeks and closing 76 points higher at 20,034.48, buoyed by sub-5 per cent wholesale inflation data and hopes of robust earnings.
The 30-share index resumed lower at 19,926.10 and dropped further to a low of 19,883.19, following weak IIP and retail inflation numbers that came after trading hours on Friday. It later recovered to end with a gain of 0.38 per cent. The Sensex last closed above the 20,000 mark on May 30, when it was at 20,215.40.
The 50-share Nifty index on the NSE rose 21.80 points, or 0.36 per cent, to 6,030.80. The SX40 index on the MCX-SX closed 51.15 points, or 0.43 per cent, higher at 11,940.03.
Firmness in the Asian and European markets and an indication of a higher opening in US index futures also boosted market sentiment. Inflation based on the wholesale price index accelerated to 4.86 per cent in June from 4.7 per cent in May, according to government data released today.
Market sentiment was boosted "with inflation numbers for June coming sub-5 per cent level once again, and the recovery in global markets," said Nidhi Saraswat, a senior research analyst at Bonanza Portfolio Ltd. "Going forward, global cues and primarily Q1FY14 results shall be dictating market trend."
Shares of realty, FMCG, capital goods and banking sectors firmed up. Bank stocks gained even as the Reserve Bank of India fined 22 banks for violating KYC/anti-money laundering norms.
Foreign institutional investors (FIIs) bought shares worth a net Rs 644.82 crore on Friday, as per provisional data from the stock exchanges.
Industrial production declined 1.6 per cent in May, as against a downwardly revised 1.9 per cent growth in April, according to data released by the government on Friday.
The European markets were higher in early trade after China's economy grew in line with analyst forecasts and the Chinese government opened markets wider to foreign investors. Benchmark indices in the UK, France and Germany were up by 0.42 per cent to 0.55 per cent.
Asian stocks ended higher as China's 7.5 per cent growth in the second quarter eased some fears of a sharper slowdown. Key indices in Hong Kong, China, South Korea, Singapore and Taiwan rose 0.02 per cent to 0.98 per cent.
In the domestic market, 18 of the 30 shares in the Sensex ended higher. The major gainers were Hindalco (3.69 pc), Sterlite (3.28 pc), Bharti Airtel (3.20 pc), M&M (2.46 pc), TCS (2.20 pc), Bajaj Auto (2.11 pc), HUL (2.06 pc), Wipro (1.73 pc), SBI (1.20 pc), Larsen (1.18 pc) and Hero Motocorp (1.08 pc).
Coal India dropped 2.5 per cent, followed by Infosys (2.17 pc), NTPC (2.16 pc), Tata Steel (2.07 pc), Tata Power (1.17 pc) and Tata Motors (1.16 pc).
Among the sectoral indices, S&P BSE-Realty rose 1.94 per cent, followed by S&P BSE-FMCG (1.19 pc), S&P BSE-CG (0.89 pc) and S&P BSE-Bankex (0.72 pc). The market breadth turned positive as 1,346 stocks ended higher, while 966 stocks finished lower. Total turnover rose to Rs 1,654.94 crore from Rs 1,557.91 crore on Friday.