Stock markets rise for 4th day on global rally, gains in banking shares after RBI rate cut
Mumbai, Jun 9 (PTI): Stock markets closed higher for a fourth consecutive day on Monday driven by gains in banking and financial shares and a rally in global markets.
The 30-share BSE Sensex climbed 256.22 points or 0.31 per cent to settle at 82,445.21 as 21 of its constituents closed higher and nine declined. During the day, it jumped 480.01 points or 0.58 per cent to 82,669.
The 50-share NSE Nifty surged 100.15 points or 0.40 per cent to 25,103.20.
In the four-day rally to Monday, Nifty has gained over 560 points or 2.27 per cent while Sensex has jumped 1,707 points or 2.1 per cent.
Optimism over a new round of trade talks between the US and China also drove the markets higher.
Analysts said the RBI's jumbo 50 basis point rate cut last week has boosted investor sentiment helping most sectoral indices close higher. Energy, IT, and financial sectors emerged as lead gainers while broader market indices outperformed benchmark indicators.
"Financial stocks extended their rally in Indian markets, driven by the RBI’s supportive aggressive policy of rate and CRRA cut. These actions have boosted investor confidence and are expected to enhance liquidity in the near to medium term, especially in midcaps," Vinod Nair, Head of Research, Geojit Investments Limited, said.
Among Sensex stocks, Kotak Mahindra Bank, Bajaj Finance, Axis Bank, Power Grid, IndusInd Bank, Maruti, Bajaj Finserv and NTPC were the biggest gainers.
However, Eternal, ICICI Bank, Titan, Mahindra & Mahindra, Adani Ports, Tata Steel and Bharti Airtel were among the laggards.
"Equity markets continued to ride the momentum from last week’s RBI policy surprise, with the Nifty-50 opening strong and extending gains on Monday. Except for realty, all major sectors ended with gains with realty likely weighed down by profit-booking after the recent rally.
"Broader mid- and small-caps continued to outperform the benchmarks and posted strong gains on positive RBI surprise lifting sentiment for domestic outlook," Satish Chandra Aluri, Analyst, Lemonn Markets Desk, said.
The BSE smallcap gauge jumped 1.19 per cent and midcap climbed 1.03 per cent.
Among sectoral indices, utilities rallied 1.65 per cent, power (1.43 per cent), services (1.35 per cent), oil & gas (1.12 per cent), IT (1.02 per cent) and energy (0.93 per cent).
Realty emerged as the only laggard.
As many as 2,798 stocks advanced while 1,409 declined and 128 remained unchanged on the BSE.
In Asian markets, South Korea's Kospi, Japan's Nikkei 225 index, Shanghai's SSE Composite index and Hong Kong's Hang Seng settled in positive territory. European markets were trading marginally lower. US markets ended sharply higher on Friday.
"The positive US jobs data and renewed optimism over US-China trade talks lifted global sentiment," Nair said.
Foreign Institutional Investors (FIIs) bought equities worth Rs 1,009.71 crore on Friday, according to exchange data.
Global oil benchmark Brent crude went up 0.30 per cent to USD 66.67 a barrel.
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Austrian police detain suspect in case of rat poison found in baby food jars on supermarket shelves
Vienna (AP): Police in eastern Austria say a 39-year-old suspect has been arrested after rat poison turned up in some HiPP baby food jars on supermarket shelves in central Europe.
HiPP, which recalled some of its baby food jars in Austria, Slovakia and the Czech Republic after the case came to light last month, said in a statement Saturday it was “greatly relieved” by the arrest, and would provide further updates as verified details come in.
The Burgenland State Criminal Police Office, under the direction of prosecutors, said a probe was launched after poison turned up in a baby food jar purchased at a supermarket in the city of Eisenstadt on April 18.
It said the suspect was being questioned, and that no further details would be immediately provided. The Burgenland public prosecutor's office has announced an investigation into suspected “intentional endangerment of the public.”
The Austrian Press Agency reported that an expert report on the toxicity of the poison was pending. A total of five tampered baby food jars were seized before they could be consumed, APA reported.
Authorities said previously they believe the tampering occurred in 190-gram (6.7-ounce) jars of baby food made with carrots and potatoes for 5-month-olds that were sold from SPAR supermarkets in Austria.
HiPP responded by recalling all of its baby food jars sold at SPAR supermarkets — which include SPAR, EUROSPAR, INTERSPAR and Maximarkt stores — in Austria as a precaution. Vendors in Slovakia and the Czech Republic also removed all of the brand's baby jars from sale.
The company said the recall was not due to any product or quality defect on its part, and said the jars left its facility in “perfect condition.”
Police said a customer at the time of the discovery had reported that a jar appeared to have been tampered with, but no one had consumed the baby food.
