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Sensex surges by 358 pts on IMF forecast
The Bombay Stock Exchange benchmark Sensex Wednesday surged by over 358 points to settle the day at all-time closing high of 22,702.
Mumbai, Apr 9: The Bombay Stock Exchange benchmark Sensex Wednesday surged by over 358 points to settle the day at all-time closing high of 22,702 after the IMF forecast of 5.4 per cent growth in 2014 triggered frenetic buying by FIIs who anticipate market-friendly policies by the new government post-elections.
Share brokers said that with a strong GDP forecast, rupee strengthening and inflation being under control, markets could be in the midst of big rallies in the next couple of months.
Buying support was so strong that 10 out of 12 sectoral indices settled the day in the positive terrain with banking, metal, pharma, capital goods, realty and auto counters taking the lead.
Only IT and Teck finished in the red ahead of the announcement of fourth quarter earnings Infosys on April 15.
The 30-share index ended the day at all-time closing high of 22,702.34, a surge of 358.89 points or 1.61 per cent from its previous close, snapping three days of losses.
This is the biggest gain for Sensex in the last one month. The best gain previously was on March 7 when Sensex spurted by 405.92 points.
An intense fag-end buying by FII pushed the barometer to a fresh record high of 22,740.04 intra-day. The previous all-time high was 22,620.65 logged on April 3 this year.
The 50-issue NSE Nifty also flared up by 101.15 points or 1.51 per cent to end at new peak of 6,796.20. It has recorded a historic intra-trade high of 6,808.70.
Post its Ranbaxy deal, Sun Pharma soared 6.91 per cent to emerge as the biggest Sensex gainer. Among banking shares, Axis Bank rose 4.44 per cent), followed by ICICI Bank at 4.18 per cent and SBI 3.23 per cent and HDFC Bank 2.61 per cent.
Among big losers Infosys dropped by 1.16 per cent.
“Sentiments remained up-beat on International Monetary Fund?s (IMF) latest outlook that stated that India’s growth is expected to recover to 5.4 per cent in 2014 supported by slightly stronger global growth, improving export competitiveness and implementation of recently approved investment projects,” said Jayant Manglik, President (Retail Distribution), Religare Securities.
Jignesh Chaudhary, Head Of Research, Veracity Broking Services said: “Local equities again posted all-time high with the help of FIIs who have poured USD 10.3 billion into local stocks and bonds this year so far.”
Foreign Institutional Investors (FIIs) invested a net Rs 703.71 crore on Monday, as per provisional data from the stock exchanges.
Top Sensex gainers included Tata Motors at 4.40 per cent, Hindalco 4.05 per cent, Tata Steel 3.18 per cent, HDFC 2.96 per cent, Gail India 2.36 per cent, BHEL 2.14 per cent, RIL 1.81 per cent
Among the S&P BSE sectoral indices, Bankex rose by 3.45 per cent, followed by metal 2.26 per cent, healthcare 2.21 per cent, Realty 1.85 per cent, and consumer goods 1.83 per cent.
The market breadth continued to show positive trend as 1,873 stocks finished in the green, 877 stocks ended in the red and 110 ruled steady.
“Once again, domestic oriented stocks led the rally with IT ending lower for the day. Continuing expectations on the political outcome supported the sentiment,” said Dipen Shah, Head, Private Client Group Research, Kotak Securities.
Among Asian stocks, Japan fell by 2.10 per cent, while China, Hong Kong, Singapore, South Korea and Taiwan moved up by 0.18-1.09 per cent.
European markets were also trading higher in their early trade as key indices France, Germany and UK looked up by 0.43 per cent to 0.76 per cent.
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