The bulls are showing no signs of fatigue. After notching up some of the best gains in years across a spectrum of indices in the month of May, stock markets have started of the new month on a high.
After finishing with one of the best monthly gains of 28.3 per cent in almost 17 years, the Bombay Stock Exchange sensitive index, Sensex, entered June by touching a 9-month high.
Sensex surged 215.38 points to gain 1.47 per cent and end the day at 14,840.63 points. This is the highest level since September 9, 2008. Nifty gained 1.82 per cent to shut shop at 4,529.90 points.
The BSE SmallCap and BSE MidCap outperformed the Sensex with gains of 3.51 per cent and 2.92 per cent respectively, underlying their importance in recent weeks again.
Growth in manufacturing activity for the second month (in May) on the back of revival of economic demand boosted market sentiments. Also, Positive cues from the global markets were so much more fuel for the bulls. US Dow Jones surged 1.15 per cent while Japan’s Nikkei gained 1.63 per cent.
Among the sectoral indices, leading the pack with some very surprising and very substantial gains was BSE Realty with a jump of 5.65 per cent and close to it was BSE Metal with gain of 5.32 per cent. BSE Bankex and BSE Healthcare were the only sectoral indices in the negative zone and apart from BSE Capital Goods and BSE Oil & Gas which underperformed the Sensex with respective gains of 0.70 per cent and 0.79 per cent, all the other sectoral indices made gains ahead of Sensex.
Among the Sensex stock 23 stocks were in positive zone with Tata Steel being the biggest gainer with a 7.79 per cent rise and following it was Sterlite Industries with 6.75 per cent, ACC with 6.40 per cent, NTPC with 6.17 per cent, and Jaiprakash Associates with 6.12 per cent.