Post Session-Strong finish to the week for Dalal Street Analysis for May 15, 2015

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Reversing Thursday"s losses, Dalal Street bounced back impressively on Friday, with key benchmarks logging gains of more than 0.40 per cent, marking a second straight weekly rally amid heightened optimism that easing inflation may prompt the Reserve Bank of India (RBI) to cut interest rates for a third time this year, perhaps even earlier than its next scheduled policy meet on June 2, bolstering the outlook for Asia"s third biggest economy.

Witnessing yet another volatile session with quite a few ebbs and flows as foreign investors await the progress on key reforms such as the Land Bill and GST, the BSE Sensex closed at 27,324, up by 117.94 points or by 0.43 per cent and NSE Nifty ended at 8,262.35 up by 38.15 points or by 0.46 per cent. The BSE Sensex touched intraday high of 27,379.57 and intraday low of 27,159.76 The NSE Nifty touched intraday high of 8,279.2 and intraday low of 8,212.2.

Meanwhile, the BSE MIDCAP closed at 10563.92 up by 36.98 points or by 0.35 per cent while the BSE SMLCAP ended at 11,040.79 up by 68.45 points or by 0.62 per cent.

Interest rate sensitive shares, Consumer durables and Banking climbed 0.81 per cent and 0.44 per cent, respectively on hopes of near-term monetary policy easing by the RBI as consumer inflation fell to a four-month low of 4.9 per cent in April.

Among the shares on the 30-scrip Sensex, that hogged the limelight and emerged as today"s top gainers were State Bank of India which advanced 2.39 per cent to 287.35, Bharti-Airtel that rallied 1.80 per cent at Rs. 392.45, Housing Development Finance Corporation Ltd. closing up 1.80 per cent at Rs. 1,230.00, Mahindra & Mahindra Ltd gained 1.42 per cent at Rs. 1,243.40 and IT major Infosys Ltd. which rose 1.30 per cent at Rs. 1,959.75.

On the economic front, media agencies reported that India and China are set to ink USD 10 billion worth business orders at the India- China Business Forum to be addressed by Prime Minister Narendra Modi in Shanghai tomorrow.

On the Asian front, shares ended mixed with stocks in mainland China plunging on concerns that new share sales may divert fund from existing stocks while investors in Japan booked fresh positions ahead of growth data and a central bank meeting next week. Most European stocks were trading higher amid stability in European bond yields and comments from ECB President Mario Draghi who committed to keeping record stimulus in place until inflation targets were achieved.

Story first published: Friday, May 15, 2015, 17:00 [IST]
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