Sensex, Nifty ride high on firm global cues

The Dollar Business Bureau

BSE Sensex and NSE Nifty ended the day on high on Friday, riding on an increased buying in frontline blue chip counters and positive global clues.

Sensex settled 100.45 points up at 26,625.91, while Nifty index ended 29.45 points up at 8,170.20.

Companies such as Bharti Airtel, HDFC, Power Grid, Tata Motors and Tata Motors DVR gained in the range of 1.64% - 3.27%.

However, Bharti Infratel, Dr Reddy’s Labs, Sun Pharma, Tata Power and Tata Steel fell between 1.57% and 3.55%.

On Thursday, the Sensex crashed more than 400 points, due to looming uncertainty over Brexit and the reduced economic growth forecast of the US by the Federal Reserve. However, investors continue to refrain from undertaking any financial activities amidst the UK's upcoming June 23 referendum vote and its subsequent impact on the global market, especially the European market.

The market will track some of the government’s developmental measures in its financial sphere. There are rumors that the GST bill could be introduced during the monsoon session, which could stimulate the economic activities in the market.

Asian markets opened higher on Friday. US stocks, too, closed higher on Thursday, thereby ending a five-day long losing streak, which also boosted sentiments of Asian investors.

India's current account deficit (CAD) contracted sharply to $0.3 billion, or 0.1% of its GDP, during the January-March 2015-16 from $7.1 billion, or 1.3%, during October-December 2015-16. For the financial year 2015-16, CAD shrank to 1.1% of the GDP.

Traders were seen selling in capital goods, healthcare and oil & gas sector stocks while piling in auto and FMCG stocks.

After the government on Thursday announced a 20% export duty on sugar to increase domestic supply and check its rising prices, the product segment, too, witnessed a hectic selling.