Sensex surges 319 pts to new closing peak; SBI zooms 10%
The benchmark Sensex surged 319 points, clocking its biggest rise in over a week, to end at a new closing peak of 24,693.35 on Friday, boosted by a spike in SBI after its earnings and heavy buying in power shares.business Updated: May 23, 2014 17:29 IST
The benchmark Sensex surged 319 points, clocking its biggest rise in over a week, to end at a new closing peak of 24,693.35 on Friday, boosted by a spike in SBI after its earnings and heavy buying in power shares on hopes of a big push under the incoming Narendra Modi-led government.
Likewise, the NSE barometer Nifty jumped 90.70 points, or 1.25%, to close at a yet another record of 7,367.10, surpassing its previous high of 7,276.40 hit on Thursday.
State Bank of India shares hit a 3-year high and closed about 10% higher after analysts said its 8% decline in profit for fourth quarter was better than expected.
Investors heavily bought into power stocks, including NTPC and Tata Power, on reports that Modi-led NDA government is likely to harness solar power and give a fillip to development of offshore wind energy. Adani Power, Reliance Power, Power Grid and JP Power also hogged the limelight.
RIL, ONGC, L&T and HDFC were among the 22 winners in 30-share Sensex.
The 30-share Sensex opened on a strong footing and rose to day's high of 24,745.86 points. It concluded the session at 24,693.35, a new record at closing, by rising 318.95 points or 1.31%. It surpassed previous record closing of 24,376.88 reached on May 20.
Financial major Goldman Sachs said a clear mandate for the BJP has rekindled hope for structural reforms and better investment climate and the country's growth is likely to accelerate to 6.5% in FY16.
The rupee surged to trade at fresh 11-month high of 58.37 in late afternoon trade. It had closed at 58.47 Thursday.
"With the sea change in the trading sentiments, investors were seen accumulating small and mid-cap stocks," said Manoj Choraria, a Delhi-based stock broker.
The BSE Midcap index ended 1.76% higher at 8,668.32 points and the small-cap barometer rose 1.87% to end at 9,128.04.
Overall, the BSE PSU index emerged the star performer by rising the most at 3.87%, followed by Power sector index (3.66%), Oil and Gas index (2.16%) and Capital goods index (2.15%).