Sensex extends gains; realty, auto shares surge
The Bombay Stock Exchange benchmark Sensex closed at 9,716.16, higher by 182.64 points from its previous close.business Updated: Dec 30, 2008 17:45 IST
The Bombay Stock Exchange benchmark Sensex on Tuesday advanced further by over 180 points on good buying support in realty, auto, IT and banking stocks amid intense expectations of a second stimulus package by the government to boost the economy.
Stretching the gains to the second straight day on Tuesday, the 30-share index closed at 9,716.16, higher by 182.64 points from its previous close.
In two days, the Sensex had gained 387 points as it was up by 205 points on Monday.
The positive sentiment also saw the wide-based National Stock Exchange index Nifty closing in on the psychologically important 3000-point level but closed at 2979.50, still up by 57.30 points from its last close. It touched a high of 2,999.15 points during the day.
Marketmen said expectations of a second stimulus package, which they said could be announced any time this week, kept the investor sentiment high. They also said anticipation of the Reserve Bank cutting the key policy rates to signal further cuts in interest rates also buoyed the markets.
Interest rate sensitive auto, realty and bank shares attracted brisk buying and recorded handsome gains.
Blue-chip Satyam Computer continued to gain as it ended up by 8.33 per cent, the biggest gain among Sensex stocks, amid talks of investors taking over the company.
Reliance Communication, which today rolled out its nation-wide GSM services, was also in limelight with its shares surging 7.16 per cent.
Auto shares Mahindra and Mahindra at 5.75 per cent and Tata Motors at 4.91 per cent too hogged the limelight on talks of the sector driving mileage out of the expected stimulus package and interest rate cut.
The Sensex has fallen 54 per cent this year, its first decline in seven years, as the worst global financial crisis since the 1930s reduced liquidity and raised concerns about the Indian economy slackening.
Realty sector, highly interest-sensitive segment remained the biggest gainer by 3.48 per cent at 2283.52. Barring one, all the thirteen segment participants recorded handsome gains.
Auto sector index was second best performer gaining 3.09 per cent at 2421.64 followed by capital goods by 2.92 per cent at 6877.72.
Tech index rose by 2.73 per cent at 1952.45, Information Technologies index by 2.40 per cent at 2226.06, Power index by 2.38 per cent at 1824.45, Bank index by 2.24 per cent at 5525.66 and Metal index by 1.86 per cent at 5205.04.
PSU index rose by 1.20 per cent at 5282.25, consumer durable index by 1.12 per cent at 1884.41, healthcare index by 0.98 per cent at 2947.77, Oil and gas index by 0.51 per cent at 6109.95 and FMCG index by 0.32 per cent at 1989.80.
With the buying activity spread over a wide-front, midcap index rose by 2.18 per cent at 3216.00 and midcap index by 1.79 per cent at 3635.48.