The BSE Sensex rose 2.6 percent on Friday fuelled by a global rally in risk assets after European leaders agreed on decisive action to lower the borrowing costs of Italy and Spain and create a single supervisory body for euro banks.
After all-night talks, the leaders of the 17-nation currency bloc agreed that the euro-area rescue funds could be used for sovereign debt purchases without forcing countries to adopt extra austerity measures.
Next, we find ET kind of agrees, but also floats a second theory:
The BSE Midcap Index was up 1.59 per cent and the BSE Smallcap Index moved 1.3 percent higher.
The government’s clarifications on GAAR guidelines boosted market sentiment, but analysts said the gains may be temporary as market participants will await complete details of the changes in the contentious General Anti Avoidance Rules.
Moneycontrol has a third theory:
Key benchmarks outperformed to global peers on hopes of some reforms or policy decision coming by in near term as Prime Minister Manmohan Singh took charge of Finance Ministry.
The Hindu has a fourth theory:
Sentiments improved further as foreign inflows poured in after global investment bank Morgan Stanley upgraded India markets to “equal-weight” from the long-standing “under—weight” status.
Now that is indeed expertise! Instant theories from all around.
IE clearly knows nothing about upbeat sentiments when it reports:
Reflecting slowdown in the economy, the growth rate of eight infrastructure sectors slowed to 4.6 per cent in May due to poor performance of crude oil, natural gas and fertiliser.
The core industries that also include coal, electricity, cement, petroleum refinery products and finished steel, and carry 37.9 per cent weight in the Index of Industrial Production (IIP), had grown by 5.8 per cent in May last year.
The cumulative growth rate of infrastructure industries during April-May 2012 also slowed down to 4.2 per cent, from 5 per cent in the same period last year, according to the data released today by the Ministry of Commerce and Industry today.
Natural gas and fertiliser output contracted by 10.8 per cent and 15.1 per cent respectively during May.
Petroleum refinery products and crude oil production slowed down to 2.9 per cent and 0.5 per cent, from 4.5 per cent and 9.8 per cent respectively during May 2011.