5 reasons for BSE Sensex surge

Aug 20 2014, 11:47 IST
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BSE Sensex on Tuesday rose for the sixth consecutive trading session to close at a new high of 26,420.7. BSE Sensex on Tuesday rose for the sixth consecutive trading session to close at a new high of 26,420.7.
SummaryOn aggregate, the benchmark index at the BSE has gained 1,091 points or 4.3 per cent.

Continuing with its dream run, the BSE Sensex on Tuesday rose for the sixth consecutive trading session to close at a new high of 26,420.7. On aggregate, the benchmark index at the BSE has gained 1,091 points or 4.3 per cent over the last six trading sessions. The mid-cap and small-cap indices have lagged the premier index as they rose by 3.4 per cent and 3.5 per cent, respectively. Sectors such as auto, oil & gas, healthcare and banking contributed significantly to the rise as the four sectoral indices rose by over 5 per cent in the six trading sessions

Reasons for Surge

* Foreign institutional investors have pumped in a net of Rs 4,193 crore over the last six trading sessions thereby providing support to the market

* Since oil accounts for a large part of India’s import, a dip in the crude oil prices to around $101 per barrel from around $107 per barrel over the last few days lifted the sentiment and stocks of oil marketing companies

* The markets also cheered Prime Minister Narendra Modi’s pledge to boost infrastructure and manufacturing during his Independence Day speech

* Inflation concerns also eased as the WPI inflation declined to 5.2 % in July 2014 from 5.4 % in June 2014, mainly on account of fall in fuel and power inflation

* Rise in the global markets also provided support to the Indian bourses

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