Sensex soars 937 points; realty, bank stocks shine
All-round buying onexpectation of strong economic growth and heavy capital inflow from funds into equity markets pushed up the BSE benchmark Sensex by a robust 937 points, or 5.24 per cent, to end the week at 18,815.64.business Updated: Mar 26, 2011 16:08 IST
All-round buying onexpectation of strong economic growth and heavy capital inflow from funds into equity markets pushed up the BSE benchmark Sensex by a robust 937 points, or 5.24 per cent, to end the week at 18,815.64.
Realty stocks were at the forefront on bargain hunting at lower levels on expectations of encouraging property demand in the first half of 2011, on the back of strong manufacturing activity.
Banking stocks, too, were in demand after the Centre tabled the banking sector amendment bill in the Lok Sabha. Introduction of Constitution Amendment Bill to facilitate implementation of the Goods and Service Tax (GTS), an indirect tax regime, and some positive changes in the Union Budget proposals also boosted the market sentiment.
Enlarged buying by foreign funds and short-coverings by operators ahead of expiry of derivatives contract on March 31 boosted the sentiment.
Foreign institutional investors (FIIs) pumped in over Rs 2,008 core in the current month. IT shares were also major gainers following smart rally in their ADRs on tech-heavy Nasdaq.
Softening global crude prices amid expectations of a slowdown in air attacks on oil-rich Libya, helped the recovery in world markets including India.
The market mood turned more positive after legendary American investor Warren Buffett promised big investments in the country, preferably in the financial services and consumer goods sectors.