Sensex surges over 453 points on signs of economic recovery
The BSE Sensex, which had lost nearly 10 per cent in the last few sessions, bounced back by 453.38 points at 13,853.70 after Finance Minister Pranab Mukherjee said that the economy was showing early signs of recovery and the government had to increase borrowing to invest more, in the absence of private investment.business Updated: Jul 14, 2009 17:35 IST
The benchmark Sensex zoomed by over 453 points on the Bombay Stock Exchange today on reports of early signs of economic recovery amid upbeat data from neighbouring countries.
The Sensex, which lost nearly 10 per cent in the last few trading sessions, bounced back to record a hefty gain of 453.38 points at 13,853.70, after Finance Minister Pranab Mukherjee said that the economy was showing early signs of recovery and the government had to increase borrowing to invest more, in the absence of private investment.
The 50-share National Stock Exchange index Nifty surged by 137.35 points at 4,111.40, after touching the day's high of 4,128.90. The market also received a booster following upbeat economic data from Singapore and Australia and a surge in investor confidence data in Germany.
A better opening at European stock markets and an overnight surge on the Wall Street were other supporting factors. The realty sector index gained the most, 9.38 per cent, to 2,995.16. The metal sector index was the second-best performer, gaining 5.53 per cent to 10,273.75, as market participants felt the improvement in economic conditions would raise demand for base metals.
Foreign institutional investors were believed to be net equity buyers during the day. This also forced speculators to cover their pending positions created in the last few sessions when the market was on the downslide.
Domestic investors stepping up buying had a positive impact on the trading sentiment. Besides realty and metals, stocks in consumer durables recorded handsome gains. The consumer durables index rose by 5.12 per cent to 2,745.24, followed by the power index (4.60 per cent to 2,657.98).
The capital goods index rose by 4.11 per cent to 11,474.77, banking 3.65 per cent to 7,580.18, oil and gas 2.85 per cent to 8,681. 55 and auto 2.70 per cent to 4,570.17. The IT index rose 2.63 per cent to 3,337.72, the teck index 2.46 per cent to 2,551.83 and the healthcare index 1.95 per cent to 3,575.59.