Share markets ended higher on Tuesday, extending their winning streak to a ninth straight day. This was the longest gaining streak of the Sensex in over three years.
Gains in metal, FMCG, oil & gas and select financial stocks helped offset losses in IT stocks.
The Sensex ended 89 points higher at 34,395 while the Nifty settled at 10,548, up 20 points.
After two years of normal monsoons, the India Meteorological Department (IMD) on Monday predicted yet another year of normal rains. The nine-day rally has taken Sensex over 4 per cent higher.
Here are 10 things to know about the rally in Sensex and Nifty:
1)Expectation of normal monsoon and a shift in government spending towards rural areas bodes well, Goldman Sachs said in a note, maintaining its FY19 real GDP growth forecast at 7.6 per cent.
2)Another normal monsoon and the government’s focus on rural development implies that rural income levels could rise faster in FY19, global brokerage CLSA said in a note, adding that one of the key beneficiaries of this would be Mahindra and Mahindra Ltd.
3)Shares of M&M rose over 1 per cent on Tuesday.
4)”There’s some secular buying taking place in the markets. Consumption theme, including retail and FMCG, are playing out very well after monsoon forecast,” said Krish Subramanyam, co-head and equity adviser at Altamount Capital.
5)Among the Nifty50 stocks, PowerGrid, HUL, Titan, ICICI Bank and Bharti Airtel rose between 1.5 per cent and 3 per cent.
6)Shares of Nestle India, maker of Maggi instant noodles and Kit-Kat chocolates, rose nearly 3 per cent after brokerages Goldman Sachs and CLSA raised their target prices.
7)IT major Infosys fell 0.70 per cent, extending its 3 per cent loss suffered on Monday. The IT major had cut its operating margin forecast for FY19, leading to selling pressure in the stock.
8)Axis Bank, Wipro and Sun Pharma were among other major loses in the Nifty50 pack.
9)The rupee weakened to a seven-month low of 65.68 against the dollar.
10)In global markets, European equities were mostly higher while Asian equities had ended mixed. China’s economy grew at a slightly faster-than-expected pace of 6.8 per cent in the first quarter, buoyed by strong consumer demand, healthy exports and robust property investment.>