Indian Markets surged for second straight day - LuvKush Finserve

Markets surged for the second straight day to end over 2.5% higher, amid firm global cues, after the steep hike in natural gas price led to a buying spree in energy shares and shortcovering in financials. A strengthening rupee also aided sentiment. The Sensex ended at 19,396 up 520 points and the Nifty ended at 5,842 up by 160 points.

The rupee appreciated against the US dollar after strong gains in equities and lower current account deficit (CAD). The dollar was quoted at Rs 59.30 against a close of Rs 60.19 on Jun 27.

Gold fell below $1,200 on Friday to its lowest since August 2010 and is on track to record its worst quarter since at least 1968 on persistent worries over the US Federal Reserve's plan to wind down its monetary stimulus.

BSE Metal index zoomed by nearly 5% followed by counters like PSU, Capital Goods, Oil & Gas, Auto, IT, Power, Realty and Banks, all gaining by 1-4% each. Shares of oil and gas companies ended higher on BSE after the Cabinet Committee of Economic Affairs (CCEA) agreed to raise gas prices to US$8.4/mmbtu, effective April 2014, for a period of five years. Among broader markets, BSE Midcap and Smallcap indices ended 1-2.3% higher.

Source : Equity Bulls

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