Sensex breaches 28,000-mark, bank stocks roll

A benchmark index of Indian equities markets Monday touched a record high of 28,010 points in the intra-trade session Wednesday, surpassing the previous high of 27,969.82 points hit on Monday.

The index provisionally closed the day's trade up 50 points or 0.18 percent around 3.30 p.m. at 27,910.42 points after coming down from the psychological barrier of 28,000-mark.

Healthy buying was observed in bank, healthcare and capital goods stocks, while selling pressure was seen in the metal, oil and gas and power sectors.

The 30-scrip Sensitive Index (Sensex) of the S&P Bombay Stock Exchange (BSE), which opened at 27,907.19 points, closed the trade provisionally at 27,910.42 points (at 3.30 p.m.), up 50.04 points or 0.18 percent from the previous day's close at 27,860.38 points.

The Sensex touched a high of 28,010.39 points and a low of 27,857.65 points in the intra-trade.

According to Angel Broking, the Indian markets were expected to open on flat note tracking SGX Nifty and most of Asian markets.

On Tuesday, the US stocks fell, led by energy companies as oil reached a three-year low. European stocks too fell, led by drop in the oil and gas stocks.

Other market analysts said they expect further reforms being announced by the government which in turn might lead the bursar into a bullish spell over the medium term.

"We expect further reforms and remain positive on the domestic infrastructure and cyclical sectors over the medium-to-long term," said Dipen Shah, head - private client group research, Kotak Securities.

"Ater the steep run-up in several of these stocks, we recommend sticking to quality and advise selectively investing in stocks having strong balance sheets and ethical managements."

ZyFin Advisors' chief executive Devendra Nevgi told IANS that with all the triggers on which the market can react being positive, the earnings need to catch up for the markets to remain on the high growth trajectory.

"There are healthy global cues like reduction in crude prices, Japanese central bank's decision to print in more money and the pick-up in global sentiments," Nevgi said.

The Indian markets were closed Tuesday on account of Muharram and will be shut again on Nov 6 (Thursday) on Guru Nanak Jayanti (birth anniversary).

The S&P BSE bank index gained 280.65 points, healthcare index moved up by 148.86 points and capital goods index got augmented by 111.75 points.

However, metal index dropped by 375.11 points, followed by oil and gas index which was lower by 76.27 points and power index which lost 16.80 points.

The wider 50-scrip Nifty of the National Stock Exchange (NSE) closed up 16.20 points or 0.19 percent at 8,340.35 points.