Sensex breaks 19K mark, gains a hefty 640 points
The 1,000 point rally from 18,000 to 19K comes within days of the FM expressing concern over the surge.business Updated: Oct 15, 2007 19:00 IST
Bulls ran amok on Dalal Street, home to the country's stock market, carrying the benchmark Sensex past the 19,000 mark milestone in a record four sessions, as investors bet heavily on blue chip stocks and political truce.
The bull charge, which re-emerged after a brief pause on Friday, helped the market barometer add 640 points - the second highest gain for a single-day.
<b1>While it tanked 395 points on Friday after Finance Minister P Chidambaram's statement that speculators were driving stock prices, market players attributed Monday's rally also to Friday's statement by UPA chief Sonia Gandhi and Prime Minister Manmohan Singh that elections were still far away - hinting that differences with Left parties on the Indo-US nuclear deal have been addressed.
On Monday, the BSE barometer started off on a strong footing and galloped to a new trading peak of 19,095.75 before ending at an all-time high of 19,058.67, a net rise 3.47 per cent over Friday's close.
Asika Stock Brokers' Paras Bodhra said: "Market is in a strong bull grip... Has left fundamentals behind and is going forward on macro indicators, including strong IIP numbers, fall in inflation...Everything is positively stacked up." S&P CNX Nifty of NSE too flared up by 242.15 points or 4.46 per cent to close at a high of 5,670.40.
Foreign institutional investors were also in the driver's seat, and poured in about Rs 8,425 crore (including Friday's provisional number) during last week.
"FIIs are going strong with their investments in the Indian markets and 20,000 could be achieved by the month-end," Premium Investments' SP Tulsian said.
Metal shares saw an unprecedented rally, pushing its index by a whopping 1,358.74 points or 9.16 per cent in a single day. The major gainers were Reliance Energy, ONGC, Tata Steel, Maruti, Bharti, SBI and Reliance Communications.