Five reasons why BSE Sensex, Nifty surged over 1.5 per cent today

The BSE Sensex wiped out more than half of its losses of this month on Friday, surging 506.28 points to close at 27,105.39. The 50-share NSE Nifty also gained 134.20 points, closing the week at 8,191.50.

Here are five factors that drove the sentiment on Dalal Street:

• VALUE-BUYING: Domestic equity markets slid 891 points, or 3.24 per cent, in the past three trading sessions till Thursday. Experts believe value buying in stocks of private banks and pharma stocks supported market sentiments on Friday. "Markets were in oversold region, some value buying in banking and pharma stocks uplift market moods today. Weak rupee also helped IT stocks to register decent returns," Alex Mathews, head of research, Geojit BNP Paribas Financial Services, told Businesstoday.in.
  

• POSITIVE GLOBAL CUES: European markets opened the day on a positive note. At 2.57 (IST), CAC 40 and DAX were up 0.75 per cent and 0.55 per cent, respectively. Asian peer markets, Nikkei 225, Hang Seng and Shanghai gained 0.45 per cent, 1.05 per cent and 2.28 per cent, respectively.

• FALL IN CRUDE OIL PRICE: Crude oil prices in the international market declined 3.27 per cent to 58.94 dollars per barrel on Thursday. Normally, a fall in oil prices reduces the country's import bill, which is positive for Indian economy. Since the beginning of the ongoing financial year, crude oil prices surged over 17 per cent to $58.94 per barrel on May 7 from $50.09 per barrel on April 1. On May 8, it was trading at $58.91 per barrel on Nymex at 3.17 pm (IST).

• HINDUSTAN UNILEVER (HUL) Q4 EARNINGS: In the second half of the trading session, HUL in line Q4 results further lifted market sentiments. For the quarter ended March 2015, the company posted net profit of Rs 1,018.08 crore, up 16.73 per cent, against Rs 872.13 crore in the corresponding quarter a year ago. "HUL posted Q4 results as per market expectation which also supported market sentiments," Sudip Bandyopadhyay, president, Destimoney Securities, said.

• SHORT COVERINGS & MAT PANEL: Short coverings also helped the Sensex and Nifty to jump nearly 2 per cent in Friday's trading session. Vinod Nair, Head-Fundamental Research, Geojit BNP Paribas  says the government's move to set up a high-level committee on MAT issue has helped market today. This could reduce FII's concerns over the medium term. But the risks prevailing with Q4 and outcome of key bills still remains, which will decide the market momentum going forward.