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| Sensex crosses16k after 15 months |
| BS Reporter / Mumbai Sep 08, 2009, 00:57 IST |
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Pranab’s assurance on stimulus, global cues help index gain 327 points
The bulls had one more reason to celebrate as the Bombay Stock Exchange Sensitive Index, or Sensex, today went past the 16,000-mark after a gap of 15 months.
The reasons for the rise were many: A firm trend in the global markets after China allowed more foreign portfolio investments on Friday and the US reported fewer job losses for August; Finance Minister Pranab Mukherjee reiteration of a statement by G-20 signaling they would not end stimulus measures; and the government’s statement that monsoon rains may improve.
All Asian markets ended in the positive territory today.
The Sensex rose 327.20, or 2.1 per cent, to 16,016.32, the highest since June 2, 2008. The Sensex exhibited firm movement throughout the day after opening 104.15 points higher. Short-covering towards the end also helped the rise.
The S&P CNX Nifty Index on the National Stock Exchange added 2.2 per cent to 4,782.90 and the BSE 200 Index gained 2.3 per cent to 1,974.59.
Analysts said the good times were expected to continue. Jitendra Panda, senior vice-president, Motilal Oswal Financial Services, said, “Markets have moved to new levels after breaking the 4,750-mark. The NSE index is poised to achieve higher levels of 4,900-5,000 due to the momentum in various sectors which have created a positive bias. Based on an analysis of the derivatives open interest, the Nifty should reach this level before the October expiry. Sectors that look positive are banking, auto and infrastructure.”
Among sectoral indices, the BSE realty index led the rally with a surge of 5.49 per cent, followed by the metal index (3.95 per cent). Among the gainers in these two sectors, Sterlite was up 5.38 per cent, Hindalco (3 per cent) and DLF (5.03 per cent). Uttam Galva was locked at the upper circuit following ArcelorMittal’s plans to become a co-promoter.
The Bankex gained 3.10 per cent after the central bank said it had permitted banks to issue Tier-II subordinated debt capital with call and step-up options in line with international practices. ICICI Bank surged 6.01 per cent. SBI added 2.90 per cent.
Tata Motors soared 11.32 per cent to Rs 565.75.
Reliance Communications continued to gain for the 12th day in a row and ended up 6.62 per cent. Indian Oil Corporation touched a 52-week high on plans to invest around Rs 60,000 crore in the next five years.
The market breadth on the BSE remained positive — out of 2,885 stocks, 2,243 advanced and 589 declined.
Hong Kong’s Hang Seng index, which unlike the Shanghai market is completely open to foreign investors, rose 1.5 per cent to settle at a three-week closing high at 20,629.31. The Nikkei rose 1.3 per cent on buying of technology-related stocks. The Sanghai Composite moved up 19 points to settle at 2,881.
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