The Sensex 30 and Nifty 50 Index closed higher in day’s trade today. The Sensex closed 194.79 points higher at 16862.80 (1.17%) in trade today. The index touched an intraday high of 16897.42 and a low of 16553.47 points in day’s trade. The Nifty 50 index closed 61.80 points higher at 5115.90 (1.22%). The Nifty touched an intraday high of 5128.90 and a low of 5015.15 points in intraday trade. The Nifty’s close above 5100 levels was above its 200-Daily Moving Average (DMA) a sign of bullishness.
Two major factors contributing to the day’s trade were the IIP numbers which came in below expectations which saw the markets slip into the negative territory but hopes of a rate cut by the RBI reversed losses in trade today. An expectation of a rate cut of 50 basis points in the repo rate and a cut of 50-100 basis points in the cash reserve ratio sent the markets to a higher close. The RBI will announce its decision regarding interest rates at its mid-quarter policy review on 18 June.
The Rupee continued its downward spiral and investors single 56.28 as a level of resistance that the currency faces against the U.S Dollar. The currency touched 55.74 in trade today.
On the global scenario, Spain dominated the mood in today’s trade. Global markets in the Asian and European region were factoring in the news of the size of the bailout package Spain would receive. Asian indices traded marginally lower while European markets were up by 0.50 percent on average.
Commodities inched lower with WTI at USD 82.41 down 0.35% and Brent trading at USD 97.48 down 0.53%. On the weather front, drenching showers and storms are expected over the Northeast and Southeast; while hail storms are to be witnessed over parts of Texas.
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(Bloomberg, Economic Times and Moneycontrol)
Categories: General News