The benchmark BSE Sensex surged over 350 points, snapping its six-day losing streak, as US index provider MSCI has deferred the inclusion of China's A stocks to its benchmark indices, rather choosing to sort out regulatory issues, which triggered buying by foreign funds.
MSCI has told China it must further liberalise its capital markets before it will include Chinese domestic shares in one of its global benchmarks, in a setback to Beijing's efforts to promote its currency and attract foreign capital.
Value-buying in blue-chips also boosted the domestic sentiment.
All BSE sectoral indices ended in the green. Among them, IT index was the star-performer and was up 2.08 per cent, followed by capital goods 2.04 per cent, auto 1.82 per cent and TECk 1.77 per cent.
Top five Sensex gainers were BHEL (+4.21%), Wipro (+3.6%), Bajaj Auto (+3.08%), Reliance (+2.49%) and L&T (+2.37%), while the sole loser was Cipla (-0.01%).
DLF up 1.7% on open after sale of DT Cinema; This will help pay-off debt and reduce non-core business holdings.
— Meera Siva (@siva_meera)
June 10, 2015"This rise is certainly a breather and can provide a relief rally in the near term," said Deven Choksey, managing director of K R Choksey Securities.
Rains and the passage of land reforms during Parliament's budget session are also key, he added.
PVR rallied up 5.5% and now trading marginally positive. DLF has announced sale of DT cinemas to PVR for ₹500 crore. DLF is up 2.4%
— Rajalakshmi Nirmal (@crajalakshmic)
June 10, 2015A report by SMC Investments and Advisors said: "Asian stocks traded mixed today, with Chinese markets leading losses after US index provider MSCI said it would put on hold the inclusion of mainland-listed A-shares in its emerging market index.US stocks finished flat as investors eyed a recovery in bond yields and economic indicators that could shed light on the timing of a rate hike.Stockpiles held by wholesalers rose in April, according to government statistics released on Tuesday. The increase was sharper than economists' had predicted. The US Commerce Department revealed that wholesale inventories rose 0.4 per cent in April compared to the previous month. The figure was up 4.5 per cent compared to April 2014 levels. Economists had expected the figure to rise by 0.2 per cent."
MCX stock is facing selling pressure. SEBI has rejected company’s request for retaining 15% holding in Metropolitan Stock Exchange.
— Rajalakshmi Nirmal (@crajalakshmic)
June 10, 2015Global markets
European shares edged up on Wednesday, with British supermarket Sainsbury’s leading the market higher after reporting sales figures in line with the consensus forecast.
The FTSEurofirst 300 index moved in and out of negative territory and was up 0.1 per cent at 1,524.49 points by 0839 GMT after falling at the open. The index fell for a sixth straight session on Tuesday, when it closed 0.4 per cent lower after hitting its lowest level since mid-February.
Asian shares rebounded from three-month lows on Wednesday, though the spectre of higher borrowing costs in the United States and concerns about the apparent lack of progress in talks between Greece and its creditors sapped confidence.
MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.8 per cent after hitting a fresh three-month low. At one point, it was down 9 per cent from the seven-year peak hit in late April.
Japan’s Nikkei eased 0.1 percent to three-week lows, while European shares were expected to dip further.