Sensex, Nifty soar on NBFC bailout hopes in budget 2019; Reliance Capital, Suzlon Energy, Jet Airways stocks gain

Source: zeebiz.com

The stock market of India witnessed sharp rally in the intraday on a special package to the NBFC in coming budget 2019. The hope became alive after the Finance Minister Nirmala Sitharaman meeting with the Reserve Bank of India (RBI) Governor Shaktikanta Das yesterday. The BSE Sensex shot up 488 points to 39,601 levels while the 50-stock Nifty skyrocketed 140 points after closing at 11,831. The index Bank Nifty surge 419 points and closed at 30,781 levels. Jet Airways, Reliance Infrastructure, Reliance Capital, Reliance Power and Suzlon Energy stocks were the top five gaining stocks in the intraday trade session while UPL, Magma Fincorp, Manpasand Beverage, Indiabulls Integrated Services and HEG stocks were among the top five losing stocks today.

Giving an idea about the current market scenario Prakash Pandey, Head of Research at Fairwealth Securities said, “This rise is mainly due to the domestic indicators. the DII have high hope that there would be some special package getting announced on July 5th when the Finance Minister Nirmala Sitharaman presents her maiden budget in the parliament. Their hope got further boost when the RBI Governor Shaktikanta Das met Sitharan yesterday.” Pandey said that apart from that their are few more indicators as the sharp rally was expected as the market was in oversold condition and it has been custom that market would have some pre-budget rally, which might have begun from today’s sharp rise at the Indian indices.

Capital Goods stocks led the bull run on Dalal Street as the BSE Capital Goods index shot up around 2.56 per cent in the intraday trade. Capital Goods major Bharat Heavy Electricals share price shot up 4.59 per cent, shares of CG Power and Industrial Solutions scaled 7.33 per cent, BEML counter surge 4.86 per cent, Larsen & Toubro stocks went up 3.36 per cent, NBCC (India) shares went up 3.36 per cent but show stopper into the sector was Suzlon Energy shares that skyrocketed more than 22 per cent in the intraday trade.

Auto stocks followed the Consumer Goods index closely as the BSE Auto index went up around 2.36 per cent today. Auto major Ashok Leyland share price surge 5.85 per cent, shares of Exide Industries surge 4.87 per cent, Apollo Tyres added 3.44 per cent, Bajaj Auto stocks jump around 3.08 per cent, Maruti Suzuki India added 3.17 per cent, TVS Motor Company counter shot up near 4 per cent, Tata Motors scrip rose 2.9 per cent, Mahindra & Mahindra stocks added 2.1 per cent while Bharat Forge stocks went up 1.23 per cent.

Among Asian markets, the Japanese Nikkei 225 index rose 0.6 per cent, South Korean Kospi nudged 0.09 per cent higher, Hang Seng shot up 1,23 per cent while the shanghai market skyrocketed 2.38 per cent.