Markets this week: Sensex, Nifty gain 2 per cent as monsoon worries recede

Buoyed by strong monsoon till date, bulls remained heavy on domestic equity market as key benchmark indices BSE Sensex and NSE Nifty surged around 2 per cent for the week ended June 26.

According to the India Meteorological Department , rainfall was above normal by 44 per cent over the country as a whole.

Actually, the concerns of a likely spike in food prices which could have ballooned inflation, have receded due to above-average rains during the initial part of the June-September southwest monsoon season. So, it is expected that the normal monsoon would cool of the inflation and the RBI would go for the further rate cut as expected by the corporate.

While the 30-share Sensex gained 495.67 points to close the week at 27,811.84, the 50-share Nifty surged 156.15 points to end the week at 8,381.10. In the BSE 100 index, Maruti Suzuki India, Aurobindo Pharma, Glenmark Pharmaceuticals and Hindustan Petroleum Corporation touched all-time highs during the week.

Among the sectoral indices on the Bombay Stock Exchange, BSE Realty index gained the most - 87.93 points, or 6.50 per cent, to 1,440.07 on Friday against 1,352.14 on June 19. It was followed by BSE Consumer Durables (up 2.93 per cent to 10,691.98), BSE Capital Goods index (2.83 per cent to 17,558.46), BSE Bankex (2.80 per cent to 21,058.76) and BSE Power index (1.92 per cent to 2,037.28). Rest all other sectoral indices ended in green.

"This week, Sensex moved up by over 450 points as concerns on monsoon receded temporarily. For the next week, domestic equity market will remain volatile due to continued talk between lenders and Greek government," G Chokkalingam, founder, Equinomics, said.

DK Aggarwal, chairman and managing director, SMC Investment and Advisors said: "Domestic market has managed to stay a bit resilient in recent times despite global developments causing worries in other markets. The domestic market rallied on the improved monsoon situation."

Also the launch of Smart Cities mission, Atal Mission for Rejuvenation and Urban Transformation (AMRUT) and Housing for All missions boosted the sentiment of the market participant.
During the week, foreign institutional investors remained net buyers in the capital market as their net investment stood at Rs 130.91 crore during June 19-26.

On the week ahead, Vinod Nair, head-fundamental research, Geojit BNP Paribas Financial Services, said: "Market will be eyeing on how the talks on Greece concerns evolve in the coming days. As far as India is concerned, while the global risk diminishes, market momentum will depend on positive FII inflows, government spending and lower interest rate."