Market Rises for 3rd Day as Crude Oil Weakens Rupee Recovers

1. Market Rises for 3rd Day as Crude Oil Weakens Rupee Recovers Indian equities rose for a third straight day, with both benchmark indices Sensex and Nifty closing above the key 35,000 and 10,700 levels buoyed by a sharp decline in global crude oil prices and a continuous recovery in the rupee. The BSE benchmark Sensex surged about 241 points to end at 35,165.48 and the NSE Nifty gained 84 points to close at 10,688.65. Among the Sensex constituents, Sun Pharma, Coal India, L&T, Asian Paints and SBI emerged as the top five gainers. Sector-wise, pharma, bank, auto and FMCG led the gains. For more information, visit: http://www.dailypioneer.com/ A widening of positions by retail investors amid continued buying by domestic institutional investors (DIIs) kept the bullish sentiment intact. In the Asian markets too, a firming trend was seen on Monday as geopolitical worries eased after the US and North Korean officials met to resume preparations for a summit between the leaders of the two countries. In yet another positive sign, prices of Brent crude -- an international benchmark for crude oil -- fell further by 1.88% to $75 per barrel in global markets. On Friday, Brent sank 3% and WTI fell 4%, and in early Asia business they were both down a further 2%. Further lifting investors mood, the rupee on Monday strengthened by 49 paise to 67.29 (intra-day) against the dollar at the interbank forex market on Monday. “Fall in oil price in expectation of more supply from OPEC and improved optimism on US and N. Korea summit influenced the market to rally. On domestic front, 10-year yield inched lower while rupee gained some traction which will give cushion on inflation front and fiscal path,” Vinod Nair, Head of Research, Geojit Financial Services Ltd, said. He said that additionally, market optimism may increase as monsoon is about to hit the southern peninsula regions which will support the consumption led story and rural economy. Driven by capital goods, oil and gas, PSU and healthcare, the flagship Sensex reclaimed the 35,000-mark at the outset to hit a high of 35,240.96 before settling at 35,165.48, up 240.61 points, or 0.69%. It also touched a low of 35,006.50 The gauge had climbed 579.96 points in the previous two days.

2. For the 50-share NSE Nifty, the closing came in at 10,688.65, higher by 83.50 points, or 0.79%, after hovering between 10,709.80 and 10,640.55. Stocks of state-run oil marketing and aviation companies were in the limelight after crude oil prices dropped in global markets. HPCL, BPCL and IOC gained by up to 6.10 per centafter global crude corrected to $75 a barrel from the 2018 high of $80.50 a barrel.