Sensex surges as funds turn net buyers
The BSE benchmark Sensex saw a second spectacular rise of 400 points in two consecutive days to close at 14,253 points as foreign and domestic funds turned net buyers with the government indicating early signs of economic recovery.business Updated: Jul 15, 2009 18:44 IST
The Bombay Stock Exchange benchmark Sensex saw a second spectacular rise of 400 points in two consecutive days as foreign and domestic funds turned net buyers with the government indicating early signs of economic recovery amid a higher beginning at European stock markets.
The Sensex, which had gained 453 points in the previous session, spurted by 399.54 points at 14,253.24 points, after touching the day's high of 14,299.54.
The broad-based 50-share National Stock Exchange index Nifty shot up by 122.10 points at 4,233.50.
The upsurge started soon after Finance Minister Pranab Mukherjee yesterday said the economy is showing early signs of recovery and the government had to increase borrowing to invest more in the absence of private investments.
The rally was also supported by reports of European markets starting higher on strong results from US firms Goldman Sachs and Intel, boosting confidence across Asia. A similar trend of encouraging quarterly results by domestic blue-chip companies led by HDFC Bank also remained a driving force behind the gains.
Government-run and Sensex member Bharat Heavy Electricals Ltd gained 6.4 per cent after the finance minister said the government would announce plans to sell small stakes in state-run firms in three to four weeks.