Sensex rises to 3-week high, investors await Modi's I-Day speech

Mumbai: The benchmark BSE Sensex today rose by over 184 points to reclaim the 26,000-level and ended the day at almost three-week high on broad buying, sparked by capital inflows and softening wholesale price based inflation.

After resuming trade on a positive note, the 30-share BSE index remained in the positive terrain throughout the day before finishing 184.28 points or 0.71 per cent higher at 26,103.23, a level not seen since July 25 when it had ended at 26,126.75.

The Sensex had, however, regained 26,000 level on July 30 when it ended the day at 26,087.42.

Rising for four days continuously, bellwether index has recorded a gain of 774 points or 3.06 per cent.

“Markets rose by more than 0.5 per cent on Friday and by more than 3 per cent for the week on the back of expectations of further reforms from the Government and reduced concerns on the geo-political situation across the world,” said Dipen Shah, Head of Private Client Group Research, Kotak Securities.

Buying support was strong that even weakness in Asian and European markets did not impact sentiment, brokers said.

Of the 12 sectoral BSE indices, 10 closed the day with marked gains. Consumer durables, realty, capital goods, metal,oil&gas and power shares took the lead, while IT and teck finished slightly lower.

Foreign Institutional Investors (FIIs) bought shares worth Rs 718.27 crore yesterday, as per provisional data with stock exchanges, boosting the investors confidence.

Meanwhile, inflation, as measured by Wholesale Price Index (WPI) dipped to five-month low of 5.19 per cent in July from 5.43 per cent last month and 5.84 per cent in July 2013. The broader 50-issue Nifty of the NSE failed to cross 7,800-mark, but rose 52.15 points or 0.67 per cent to three-week high of 7,791.70.

The BSE and NSE will remain closed tomorrow in view of Independence Day celebrations.

PTI