Sensex gains 300 points but broader markets weak

BSE Sensex gained 300 points on Monday though the market breadth is extraordinarily destructive. Sensex was buying and selling at 74,183 points, up by 305 points. As many as 62 per cent of the shares, 2388 shares are declining whereas 31 per cent are gaining.

PSU shares tanked on Monday, with the sectoral index down 2.5 per cent. PFC was down 8.6 per cent, REC was down 6.2 per cent, MRPL was down 5.8 per cent, Canara Bank was down 4.7 per cent, BHEL was down 4.7 per cent, and PNB was down 4.2 per cent.

Among the Sensex shares, Kotak Mahindra Bank was up 5.1 per cent, and TCS was up 2.1 per cent. Among the losers, Titan was down 6.2 per cent, SBI was down 3 per cent, and NTPC was down 2 per cent.

V Ok Vijayakumar, Chief Investment Strategist, Geojit Financial Services, stated the reduce of 172 points on the Nifty final Friday is rumoured to be triggered by fears of modifications within the long-term capital gains tax within the Budget after elections. “The Finance Minister shortly clarified that these are speculative. This clarification and optimistic international cues are more likely to help the market within the close to time period,” he stated.

He added that the US jobs knowledge for April has come decrease than anticipated indicating a weakening labour market and a slowing economic system. US unemployment has risen to three.9 per cent in April. So the potential for a fee reduce by the Fed has once more brightened. The decline within the greenback index to 105.8 and the reduce within the 10-year US bond yield to 4.49 per cent augur nicely for the market.

“Positive remark by Warren Buffett that India is an untapped market with nice potential is vastly essential. FIIs can take a cue from that reasonably than reacting each time to modifications in US bond yields.

Kotak Mahindra Bank is more likely to reply positively to its spectacular This fall outcomes. The This fall auto outcomes coming this week will probably be keenly watched by the markets and optimistic market responses are probably,” he stated.

(With inputs from IANS)