Nifty reclaims 8,200 on 7th Pay Commission approval; Brexit woes ease

Nifty reclaims 8,200 on 7th Pay Commission approval; Brexit woes ease

Benchmark indices ended near day’s high after the Cabinet today approved the recommendations of the 7th Pay Commission. Investors’ sentiments were further boosted due to recovery in global stocks after near term Brexit concerns eased.

The S&P BSE Sensex rose 216 points to end at 26,740 and the Nifty50 gained 76 points to close at 8,204. Among broader markets, BSE Midcap and Smallcap indices surged between 0.9%-1.2%, outperforming the benchmark indices.

ALSO READ: 7th Pay Commission: Cabinet approves big pay hike for government employees

Commenting on today's development, Motilal Oswal, CMD, Motilal Oswal Financial Services said "Just ahead of Monsoon, the 7th Pay commission will set the snowball impact in the economy. This is a well expected positive move, this will help achieve GDP growth target quicker. The Auto, consumer durables and FMCG sector would see much higher demand. The small concern could be that this may push inflation a bit higher”.

The Union Cabinet, led by Prime Minister Narendra Modi, on Wednesday approved the recommendations of the Seventh Pay Commission, a move which will boost consumption by putting extra disposable income in the hands of the central government’s 4.7 million employees.

The Cabinet has also approved the National Mineral Exploration Policy (NMEP) on Wednesday, which will pave the way for auction of 100 prospective mineral blocks, boosting India’s mining potential.

The Cabinet cleared the model Shops and Establishment Act that would allow cinema halls, restaurants, shops, banks and other such workplaces to be open 24X7. Read more.

Brexit vote: What the UK media has to say

Infographic: Impact of Brexit outside the EU

Sensex soars 237 points ahead of Brexit poll outcome; European cues lend support

Brexit vote: What the UK media has to say

As United Kingdom votes in the key referendum on whether or not Britain must be a part of the European Union, polls indicate a contest ‘too close to call’.

Meanwhile, UK media seem to have made their positions clear.

The Independent even wrote on how the media in UK was favouring Brexit. The publication quoted a study by the Reuters Institute for the Study of Journalism, which analysed 928 articles. From these, 45% were in favour of leaving, while 27% were in favour of staying. Around 19% of the remaining articles were 'mixed or undecided', while 9% had no position on the issue.

The Sun had already come out in support of leaving the Union. The Rupert Murdoch-owned tabloid, with a front page cover titled ‘BeLEAVE in Britain, it said that the nation ‘must exit to prevent from being engulfed by the German-dominated federal state.’ (more)