Mumbai, June 2: The sensex welcomed finance minister Palaniappan Chidambaram to Mumbai with a 88.57-point rise.
The market is expecting certain confidence-building statements from the finance minister after he completes a string of meetings with industrialists, local institutions and foreign institutional investors tomorrow.
Although the rise in share prices was not backed by high volumes, there was fresh surge in FII buying in the later half of the trading session today.
Public sector and bank stocks staged a smart rally. These two sectors, hit by the anti-reform statements made by the new government and its allies, are now back in favour and have outperformed other sectors by a wide margin today.
The sensex regained another 89 points due to renewed buying spurred by reports that foreign institutional investors have again turned net buyers on the Indian stock markets.
The BSE 30-share index opened on a firm note at 4846.09 and steadily accumulated gains to touch an intra-day high of 4946.15 before closing at 4923.69 compared with Tuesday’s close of 4835.12, a net gain of 88.57 points or 1.83 per cent.
News of JP Morgan expressing confidence in the Indian markets helped to boost sentiments.
Buoyed by continued positive FII inflows, operators made fairly heavy commitments in banking and PSU counters, particularly refinery stocks.
Figures reveal that FIIs have been net buyers, with investments worth Rs 210 crore in two sessions on May 28 and 31. The trend has been carried over to the first two trading days of June.
“International concerns remain (oil prices and terrorism), but the positive outlook arising out of FIIs turning net buyers has charged up the market again. The markets will open on a positive note tomorrow,” Ajit Sanghvi of MSS Securities said.
Refinery stocks rose on reports that oil companies might get the freedom to effect a modest price hike.
Major pivotals like HPCL, ONGC, Bhel, ICICI Bank, MTNL, Reliance Industries, Tata Steel, Reliance Energy, Infosys scored handsome gains.