Sensex logs best weekly jump since May, rallies 145 points

Mumbai: Market registered its biggest weekly gain since May as the Sensex rallied over 145 points to end at 27,145, an 8-month high, buoyed by data that showed manufacturing activity gathered steam last month amid strong foreign capital inflows.

Globally, shares traded strong, which came as strong cues for the domestic market.

In the process, the NSE Nifty reclaimed 8,300 to close at an over 10-month high of 8,328.

According to the monthly PMI survey, India's manufacturing hit a three-month high in June, backed by a stronger increase in new business orders. The Nikkei Markit India Manufacturing PMI rose to 51.7 in June, from 50.7 in May.

Progress of monsoon has rekindled interest in India growth story after the weather office said rainfall for the week ended June 29 is 1 percent above the average.

That apart, a heightened sense of optimism because of steps to liberalise the FDI regime further, Cabinet approval to pay hike for government employees and improved chances of GST passage in the Upper House of Parliament played its part in the rally.

Rising for the fifth day, the Sensex settled higher by 145.19 points, or 0.54 percent, at 27,144.91, its highest closing since October 27, 2015, when it ended at 27,253.44. The index had gained 602.01 points in the previous four sessions.

At the close, the 50-share NSE Nifty was at 8,328.35, up 40.60 points, or 0.49 percent -- a level last seen on August 20 last year.

For the week, the Sensex climbed 747.20 points, or 2.83 percent, while NSE Nifty surged 239.75 points, or 2.96 percent. For both, the jump is their best weekly gain since May 27.

The rebound in global markets on hopes that central banks will put their act together to tackle the Brexit impact and an appreciating rupee against the dollar came as a big turn-on.

As many as 18 out of the 30-share Sensex pack advanced.

ONGC took the top slot, by rising 3.72 percent, followed by L&T (2.97 percent), ITC (2.83 percent), Dr Reddy's (2.77 percent) and GAIL (2.61 percent).

The BSE oil and gas index gained the most by climbing 2.76 percent, followed by capital goods 2.10 percent, FMCG 1.85 percent, PSU 1.60 percent and healtchare 1.04 percent.

Mid-cap and small-cap too rose 1.20 percent and 0.71 percent, respectively, on buying spree by retail investors.

Shares of the country's second-largest CNG retailer Mahanagar Gas today made a strong debut at the bourses, ending 23.92 percent higher at Rs 520.30 against the issue price of Rs 421.

Meanwhile, foreign portfolio investors (FPIs) bought shares worth a net Rs 1,107.42 crore yesterday, as per provisional data.

Asian stocks edged up tracking overnight gains in the US. Overseas, shares in Japan surged 0.68 percent, Shanghai 0.10 percent and Singapore 0.19 percent. Financial markets in Hong Kong were closed today for a public holiday.

European markets too were showing a firm trend. London's FTSE rose 0.35 percent while Paris shares gained 0.09 percent and Frankfurt rose 0.26 percent. CKS 2 LAST

"Markets ended the week on a strong note and near 8-month

highs. Sentiment continued to be buoyed by strong performance of global markets, which have erased almost all post-Brexit losses. The European markets have also bounced back on likely easing off the Brexit concerns," said Dipen Shah, Senior Vice President & Head PCG research, Kotak Securities.

"On the investment side, government capex continues to remain strong and companies are indicating optimism on revival of private sector capex. These factors should support economic growth, going ahead, which augurs well for the long term performance of the equity markets."

The market breadth remained positive as 1,572 stocks ended in the green, 1,137 closed in the red and 142 stayed flat. Total turnover went up to Rs 3,336.56 crore, from Rs 3,108.98 crore yesterday.