Sensex rises after G20 boost talk

Staging a spectacular recovery in the intra-day trade, the 50-share NSE Nifty soared to a fresh 52-week high on Monday after a meeting of G20 finance ministers pledged more measures to support global growth amidst growing uneasiness over Britain’s exit from the EU. The expectation about the passage of GST during the monsoon session also helped the markets to maintain their positive momentum.

After opening the day on a negative note, the Nifty surged 118.45 points from its day’s low to end the day at 8,635.65, up 94.45 points or 1.11 per cent. Similarly, the BSE Sensex jumped 358 points from an intra-day low to close the session at 28,095.34, up 292.10 or 1.05 per cent. “Despite a muted start to corporate India’s earnings season, the markets have surged ahead as global liquidity is still strong and foreign portfolio investors are increasing their exposure to Indian equities,” pointed out Vinod Nair, head of research, Geojit BNP Paribas Financial Services.

While leading companies in IT and pharma sector have under performed in the latest rally, Mr Nair noted that domestic growth related sectors have managed to put up a good show on the domestic bourses.