HindustanTimes Fri,19 Dec 2014

Sensex jumps 467 pts to end at 3-year high of 20,883

Hindustan Times  Mumbai, October 17, 2013
First Published: 10:25 IST(17/10/2013) | Last Updated: 01:10 IST(19/10/2013)

The benchmark Sensex on Friday came close to touching 21,000, surging 467 points, or 2.3%, to end at 20,883, its highest close in nearly three years, after banks rose on value-buying and blue chips gained as foreign investors extended buying.

The index surged to just 121 points below its all-time high as  concerns eased over a tapering of easy money from the US and China’s growth accelerated to 7.8% in the third quarter.

Investors became richer by about `1.1 lakh crore as strong quarterly results from HDFC Bank, TCS and Infosys, which were announced during the week, also boosted sentiment.

The Nifty also shot up 144 points, or 2.4%, to close at 6,189.

“Markets were buoyed by the postponement of the debt ceiling issue and on likely expectations that the Fed will not taper the stimulus programme in its next meeting, pending final resolution of the debt ceiling deal,” said Dipen Shah, head, private client group research, Kotak Securities.

Foreign institutional investors (FIIs) bought `1,109 crore worth of shares on Thursday, a tenth consecutive session of purchases, taking their total to `7,847 crore, regulatory data showed. Brokerage Sharekhan said foreign investor buying for ten consecutive sessions aided a buying mood.

Of the 30 Sensex companies, 29 advanced, led by Sesa Sterlite (up 6.1%), Tata Steel (up 5.9%), ICICI Bank (up 4.4%), L&T (up 4.2%) and HDFC Bank (up 3.5%).

All 13 sectoral indices ended higher with the Bankex gaining the most (up 3.9%) as HDFC Bank, ICICI Bank and SBI climbed on value buying.

Of the companies traded on the Bombay Stock Exchange, prices of 1,417 appreciated, 1,075 declined and 161 were unchanged.

Analysts, however, are divided on whether the rally will sustain.

“Considering the broader scenario, the positive momentum may continue but a lot depends on earning figures,” said Jayant Manglik, president, retail distribution, Religare Securities.

“We should be cautious as markets have moved up very fast in a short time,” cautioned Shah.

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