Metal, tech stocks push up sensex

MUMBAI: With the Federal Reserve sounding less aggressive in pursuing hike rates in future, BSE sensex, bonds and the rupee rose on Friday. Friday’s bond prices will determine how much provision banks will have to make on their bond portfolios.

“The market is taking cue from the international situation and following developed markets,” said Kumar Nair, MD of Transwarranty Finance. Japan’s Nikkei, along with Hong Kong’s Hang Seng and Korea’s Kospi indices, surged 2.5% each, while Indonesia’s Jakarta index rose the most at 2.7%.

In India, large scale buying in metal, consumer goods, capital goods, technology and auto stocks pushed the index up above the 10,600-point mark to touch an intra-day high of 10,627. The NSE’s 50-share Nifty climbed 4.35% to close at 3,128 points.

Traders said that expectation of improved monsoon and higher corporate earnings in the fiscal first quarter — scheduled to be announced in July — could have revived buying interest in stocks.

The rupee also gained smartly opening at Rs 46.12 levels, rising to touch Rs 46.02 in intra-day trade, as dealers bought heavily on account of month-end transactions and an improvement in stock indices.

Bond yields rose following the news that the US may not raise interest rates in the near term and adopt a soft stance. The RBI governor’s statement that the current inflation figures do not completely reflect the rise in oil prices saw bond prices fall sharply.