Sensex advances 57 points on hopes of economic reforms
The BSE benchmark Sensex rose by almost 64 points in early trade today on sustained buying by funds and retailers largely on hopes of more reform measures by the government in the winter session of Parliament.business Updated: Nov 22, 2012 17:11 IST
The BSE barometer Sensex rose for the second straight day today gaining nearly 57 points on selective buying in banking, IT and FMCG stocks after positive signs that the government might push through its economic reforms to boost economic growth.
The 30-share benchmark index rose by 56.96 points, or 0.31 per cent, to settle at 18,517.34 points as an attempt by former UPA ally Trinamool Congress to bring a no-confidence motion against the government over FDI in retail failed in the Lok Sabha.
The Sensex had gained 131 points in the previous session.
The broad-based National Stock Exchange index Nifty rose by 12.95 points, or 0.23 per cent, to 5,627.75.
The government is reaching out to other political parties to secure backing for reforms in the winter parliamentary session that begins today, including plans to boost FDI in insurance and pension sectors.
The upsurge was also supported on firming Asian trend on signs the US jobs market is stabilising and Chinese manufacturing is recovering. European stocks rose ahead of EU summit to solve debt crisis.
Banking stocks, led by State Bank of India, remained on the forefront after the government allowed state-run LIC to increase maximum stake in other companies.
SBI jumped 1.89 per cent to Rs 2,099.65, HDFC Bank by 1.03 per cent to Rs 669.25, and Axis Bank by 1.86 per cent to Rs 1,257.20.
Shares of Hindustan Copper surged by 11.33 per cent to Rs 266.30 after the government announced plans to divest four per cent equity in the company.
The capital goods sector index gained the most by adding 1.07 per cent to 10,624.36, followed by IT index by 0.85 per cent to 5,731.71. Banking index rose by 0.52 per cent to 13,224.23.