Sensex surges by 520 pts on Finance Minister's promise
Stock market rallied ahead with a 520-point surge in its benchmark Sensex, as heavy buying was seen in banking, commodity and realty stocks with Finance Minister Pranab Mukherjee promising to push for lower credit costs and higher infrastructure spending .The BSE Sensex regained 14,000-point level and ended the day at 14,109.64 points.business Updated: May 27, 2009 19:22 IST
Stock market rallied ahead on Wednesday with a 520-point surge in its benchmark Sensex, as heavy buying was seen in banking, commodity and realty stocks with Finance Minister Pranab Mukherjee promising to push for lower credit costs and higher infrastructure spending.
With Wednessday's gain of 520.41 points, the Sensex regained 14,000-point level and ended the day at 14,109.64 points. The index touched an intra-day high of 14,122.78 points.
The wide-based National Stock Exchange index Nifty spurted by 159.35 points, 3.87 per cent to 4,276.05.
Buying activity gathered momentum in metal stocks on reports of the copper prices climbing in overseas markets, while bank and interest-sensitive construction shares rose after Mukherjee said the government would increase spending in infrastructure and get a commitment from banks for a benign plan of action to ensure cheaper credit.
The market sentiments, especially for the PSU stocks, got further boost from Finance Minister's statement that the government would take forward the process of economic reforms. Firm global trends also helped the rally on domestic bourses.
ICICI Bank, L&T, Sterlite Industries, Reliance Industries and Infosys were among the major gainers.
Reliance Industries rose 2.01 per cent to Rs 2,187.20, Infosys Technologies by 2.68 per cent to Rs 1,584.60, ICICI Bank by 6.59 per cent to Rs 710.55, Sterlite Industries by 9.49 per cent to Rs 591.15 and Larsen and Toubro by 4.51 per cent to Rs 1,311.40.
Among the sectoral indices, Realty Index shot up by 6.09 per cent, Bankex by 5.42 per cent, Power 4.89 per cent, PSU by 4.71 per cent and Metal by 4.67 per cent.
The rising trend was also supported as brokers indulged in covering their pending positions ahead of the settlements in the derivative segment. However, a high level of volatility may be seen ahead of expiry of May 2009 futures and options contract tomorrow, market players commented.
Asian shares rose to a seven-month peak and oil prices hovered near their highest since November after a jump in US consumer confidence reinforced a view that the global economy has bottomed, even if recovery appears fragile.
Among the Asian indcies, Hang Sang ended sharply higher by 5.26 per cent, Taiwan by 3.10 per cent, Strait Times by 3.01 per cent, Nikkei by 1.37 per cent and Shanghai Composite by 1.71 per cent while Kospi eased by 0.73 per cent. European shares also resumed higher by 0.20 per cent to 0.38 per cent in the early trade in line with overnight gains in US markets.
Among the Sensex pack, Reliance Infra shot up by 14.72 per cent, followed by Sterlite Ind by 9.49 per cent, ONGC by 9.42 per cent, DLF by 8.49 per cent, Grasim by 7.27 per cent, Ranbaxy Lab by 7.14 per cent, ICICI Bank by 6.59 per cent and Jai Prakash by 6.58 per cent.
The market breadth was strong with 2,346 gainers as against 459 losers on the BSE.