Sensex surges on robust industrial growth, recover 17k
Buoyed by industrial growth figure beating all street projections and hopes of Ambani brothers patching up helped the BSE benchmark Sensex today surge over 384 points to reclaim the 17,000-point peak. Listen to podcastbusiness Updated: Oct 12, 2009 17:09 IST
Buoyed by industrial growth figure beating all street projections and hopes of Ambani brothers patching up helped the BSE benchmark Sensex on Monday surged over 384 points to reclaim the 17,000-point peak.
The 30-share Sensex, which commenced the day higher, advanced further to record a handsome gain of 384.01 points to close at 17,026.67 as an over 22-month high industrial growth of 10.4 per cent in August boosted trading sentiment.
The crucial 1,7000 level was earlier regained on October 1.
According to brokers the market also got support from Prime Minister Manmohan Singh's Sunday's statement that the nation's economic growth will accelerate.
The industrial growth for the month of August rose to 10.4 per cent, clearly showing that stimulus measures of the government have yielded results which may make up for the likely decline in farm output in months to come
Besides, Finance Minister Pranab Mukherjee's comments on industrial production that "it is a good sign and it is a recovery" fueled trading sentiment.
Major support to the market came from Reliance Industries, which has a heaviest weight on the Sensex, rising by 3.19 per cent to Rs 2,167.10, on expectations the patch-up between the Ambani brothers would boost investor confidence.
Similarly, the wide-based National Stock Exchange index Nifty shot up by 109.05 to 5,054.25, after touching the day's high of 5,068.05.
In the 30-BSE index stocks, 27 ended with gains while three - BHEL, Hero Honda and Reliance Communication lost substantial ground on profit selling.