Sensex soars 340 pts on hopes of financial reforms
Expectations of faster economic reforms and strong global cues powered the benchmark Sensex by 340 points to close at 16,498.72 points, extending the bull run for the fourth straight day on Monday.business Updated: Nov 09, 2009 17:38 IST
Expectations of faster economic reforms and strong global cues powered the benchmark Sensex by 340 points to close at 16,498.72 points, extending the bull run for the fourth straight day today.
Bank stocks stole the limelight with hefty gains as Prime Minister Manmohan Singh said yesterday that the government would pursue financial sector reforms to fund infrastructure development that would in turn propel the economy.
India's largest lender SBI jumped by 5.19 per cent, ICICI Bank by 4.72 per cent and HDFC Bank by 4.06 per cent.
The Bombay Stock Exchange barometer closed at 16,498.72 points, a gain of 340.44 points or 2.11 per cent.
Singh also said government would take steps to withdraw stimulus measures by next year and there is a need to develop long-term debt markets and deepen corporate bond markets, that in turn calls for a strong insurance and pension sub-sectors.
Brokers said a strong rally in most-weighted Reliance Industries also helped the index post smart gains. RIL jumped 3.46 per cent to close at Rs 2,024.55 after reports that the company is close to announcing major overseas acquisition.
The market sentiment was bolstered by firm European markets which traded higher by over 1 per cent in opening trade. Asian indices also ended in the green.
Singapore shares closed up 1.32 per cent, Hong Kong's Hang Seng added 377.83 points to close at a two-week high, while Japan's Nikkei-225 index climbed 19.64 points.