BSE Sensex soars 314 pts as optimism rises over Union Budget, wraps up best quarter in years

Jun 30 2014, 18:51 IST
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BSE Sensex rises about 314 pts to end at 25,413.78. (PTI) BSE Sensex rises about 314 pts to end at 25,413.78. (PTI)
SummaryNSE Nifty rose 1.24 pct on Monday as investors bought shares in recent outperformers...

the view that sustenance above 25300/25270 (7550) will lift the market beyond all time highest levels 25750/7700. In case if indices falls to given supports then one can add long positions to the trading portfolio with a medium to long term view. India VIX is trading at 17.85 and historically we have seen range of it between 15 and 25. Based on this, we would like to advice out of money straddle strategy till the announcement of the budget as the event will increase the volatility on any of the either side that should help option traders. Buy PSU banks at each major supports. Indian currency remained almost unchanged around 60.10 and ease at middle- east will help to appreciate in the near term. It has resistance at 59.75 and support at 60.60. above 60.60 it may weaken to 61 levels quickly.

India's BSE gains 1.25 percent, posts best quarter since Sept 2009

(Reuters) India's benchmark BSE index rose 1.25 percent on Monday as investors bought shares in recent outperformers such as State Bank of India, allowing the broader index to post its best quarterly gain since July-September 2009.

The BSE rose 13.52 percent in the quarter concluded on Monday, making it the best performer in Asia-Pacific, in a rally spurred by hopes the election of Narendra Modi as India's prime minister would spur a period of economic reforms. Modi swept to power in May and the index rose to a record high on June 11.

Sectors expected to especially benefit from reforms such as banks led the gains. State Bank of India, the country's largest lender, rose 40 percent for the quarter.

Foreign institutional investors have been the backbone of the rally, buying shares worth a net $6.27 billion.

Whether these gains can sustain will now depend on whether Modi can deliver, starting with the government's maiden budget to be unveiled on July 10.

"We believe markets will consolidate at these levels and are preparing for the budget. Expectations are much higher and we may see the right soundbites from the government. We may see some consolidation, but are bullish for the near term," said Samir Gilani, head of sales trading and derivatives at IDFC Securities.

The broader NSE index rose 1.37 percent to end at 7,611.35 points. It notched up a gain of 5.3 percent for the month and 13.53 percent for the quarter.

The benchmark BSE index closed 1.25 percent higher at 25,413.78, with a

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