Mumbai: The benchmark BSE Sensex rose for the second straight day today by surging 363 points to close at over three-week high of 27,687.30 after government reported fiscal deficit at 4.0 per cent of GDP, while continuing rate cut hopes amid forecast of timely monsoon helped too.
The sentiment was also boosted by value-buying in recently beaten down blue-chip stocks.
Shares of fuel retailers, HPCL, BPCL and IOC, surging up to 4 per cent after petrol price was hiked over the weekend contributed to 30-share barometer's gains.
Bettering its own financial targets, the government yesterday said that it has contained the fiscal deficit at 4 per cent of GDP for 2014-15 at Rs 5,01,880 crore.
"The sentiments were on optimistic note in response to the government statement that it has contained the fiscal deficit at 4 percent of GDP for 2014-15, bettering its own financial targets," said Jayant Manglik, President-retail distribution, at Religare Securities.
The Sensex began on a strong footing at 27,416.97 and continued to rise to hit a high of 27,725.97 before settling 363.30 points or 1.33 per cent higher at 27,687.30.
This is the best closing since April 23 when Sensex had closed at 27,735.02.
The gauge has now gained 481.24 points in two sessions.
The broad-based NSE Nifty regained the 8,300-level by surging 111.30 points or 1.35 per cent to close at 8,373.65.
It shuttled between 8384.60 and 8,271.95 intra-day.
Equity brokers said sentiments got bolstered after a forecast of a timely monsoon and expectations of a rate cut by the Reserve bank at its policy meet early next month following cooling inflation and slowing industrial growth.
In tandem with overall trends, the BSE small-cap index rose 0.97 per cent, while mid-cap edged up by 0.98 per cent.
Besides refinery, pharma, FMCG, capital goods, power, banking, IT and teck shares also were in demand and notched handsome gains.
Among Asian markets, Japan, South Korea and Taiwan ended with gains, while China, Hong Kong and Singapore finished in the red. .
