The benchmark Sensex Monday returned to the 20,000-mount despite a morning negative sentiment, and closed with gains for the third consecutive day above this psychological level after seven weeks at 20,034.48. The market turned positive after headline inflation readings remained under 5 per cent and hopes of robust earnings. The 30-share index resumed lower at 19,926.10 and dropped further to a low of 19,883.19, following weak IIP and retail inflation numbers that came after trading hours on Friday. It later recovered to end with a gain of 0.38 per cent. The Sensex last closed above the 20,000 mark on May 30, when it
was at 20,215.40.
The 50-share Nifty index on the NSE rose 21.80 points, or 0.36 per cent, to 6,030.80. Firmness in the Asian and European markets and an indication of a higher opening in US index futures also boosted market sentiment.Inflation based on the wholesale price index accelerated to 4.86 percent in June from 4.7 percent in May, according to government data. Market sentiment was boosted "with inflation numbers for June coming sub-5 percent level once again, and the recovery in global markets," said Nidhi Saraswat, a senior research analyst at Bonanza Portfolio. "Going forward, global cues and primarily Q1FY14 results shall be dictating market trend."
Shares of realty, FMCG, capital goods and banking sectors firmed up. Bank stocks gained even as the Reserve Bank fined 22 banks for violating KYC/anti-money laundering norms. Foreign institutional investors bought shares worth a net Rs 644.82 crore on Friday, as per provisional data from the stock exchanges. Industrial production declined 1.6 per cent in May, as against a downwardly revised 1.9 per cent growth in April, according to data released by the government last Friday. The European markets were higher in early trade after China's economy grew in line with analyst forecasts and the Chinese government opened markets wider to foreign investors.Benchmark indices in Britain, France and Germany were up by 0.42 per cent to 0.55 per cent. Asian stocks ended higher as China's 7.5 per cent growth in the second quarter eased some fears of a sharper slowdown.
