Market rally continues, Sensex zooms past 19,000-level

The Indian indices ended up as the best performer of the day in Asia-Pacific. Many market analysts have forecast that Sensex could even breach its all-time high of over 21,000 level next year.

"19,000-level has come sooner than most people expected. We would see much higher levels in the months to come," said Manish Sonthalia, VP and Fund Manager Motilal AMC-PMS.

After rising to a day's high of 19,205.33, Sensex closed with a gain of 328.83 points, or 1.75 per cent, at 19,170.91, its highest since April 28, 2011.

In the 30-share Sensex, 26 stocks closed with gains led by Bajaj Auto, ICICI Bank, Tata Motors, Cipla and Sterlite. L&T, HDFC, HDFC Bank, RIL and ITC also helped cement gains.

Realty, banks, auto and capital good shares attracted good buying and their sectoral indices ended higher in the range of 1.5-3.4 per cent.

Across the BSE, over 1680 stocks gained today, helping the investor wealth zoom to Rs 66.74 lakh crore, up by Rs 80,000 crore in a single session.

Today is the second straight day the benchmark has gained over 300 points. Sensex soared by 305 points on Tuesday after credit rating agency Moody's kept India's outlook stable.

Brokers said investors also appeared confident that the UPA government will excel in a trial of strength over FDI in retail issue to be witnessed in Parliament next week.

The 50-share NSE index Nifty closed 97.55 points, or 1.70 per cent, higher at 5,825. Nifty may clock a rise 14 per cent by 2013-end, Goldman Sachs said in a report today, upgrading its recommendation on India to overweight from market-weight.

"For India, upside drivers include a recovery in growth, a decline in inflation, and the potential for continued policy reforms," Goldman Sachs said adding that with structural issues being addressed and a cyclical recovery on the horizon, the market may bounce strongly next year. (MORE)