Sensex closes above 25,000-mark for the first time
The 30-share BSE index after commencing higher, surged further to breach the 25,000 mark once more. It hit the day's high of 25,044.06, before settling 213.68 points, or 0.86% higher, at all-time closing high of 25,019.51.business Updated: Jun 05, 2014 19:19 IST
The benchmark Sensex created history on Thursday by closing above the 25,000 mark for the first time on heavy buying in metal, power and oil & gas shares by overseas investors, amid expectations the European Central Bank will unveil an economic stimulus shortly.
The 30-share BSE index after commencing higher, surged further to breach the 25,000 mark once more. It hit the day's high of 25,044.06, before settling 213.68 points, or 0.86% higher, at all-time closing high of 25,019.51.
The rally was powered by shares of metal, oil and gas, power, PSUs, FMCG and IT.
The gauge has now surpassed its previous closing high of 24,858.59 on Tuesday. Its intra-day all-time high remains 25,375.63 hit on May 16.
The 50-share NSE Nifty climbed 71.85 points, or 0.97%, to close at a new peak of 7,474.10, breaching previous record closing high of 7,415.85 on Tuesday. On Wednesday, both the Sensex and the Nifty fell.
There is growing speculation that the European Central Bank (ECB) will ease monetary policy later today to support a fragile recovery, said traders.
Metal and oil and gas prices usually go up after an economic stimulus on hopes some funds will come into such assets.
Sentiment was also bullish following foreign funds inflow on continued optimism about a revival in Indian economy, they added. Metal stocks - Sesa Sterlite and Tata Steel - led the surge helping Sensex end above 25,000-mark for the first time.
Investors were seen accumulating blue-chip stocks on hopes that the government would announces industry-friendly measures in its first budget in July.
"We may see Sensex levels at 30,000 before budget," said Motilal Oswal, CMD, Motilal Oswal Financial Services.
Foreign Institutional Investors (FIIs) bought shares worth a net Rs 192.56 crore in Wednesday's trade as per provisional data from the stock exchanges.
Among sectoral indices, the BSE Metal index gained the most by surging 3.33% as Sesa Sterlite, SAIL, Hindalco and Tata Steel gained in 3-7% range.
The BSE Oil and Gas index emerged second best performer by rising 1.96%, followed by Power (1.96%) and FMCG (1.49%). However, the BSE Banking index ended 0.39% lower due to profit-taking.