Sensex up 260 pts on firm global trend despite low GDP numbers
Despite slowdown in the economic growth, the BSE benchmark Sensex rose 260 points today on a firm global trend as higher US consumer spending data ignited hopes of global economic recovery.business Updated: Aug 30, 2011 16:34 IST
Despite slowdown in the economic growth, the BSE benchmark Sensex rose 260 points on Tuesday on a firm global trend as higher US consumer spending data ignited hopes of global economic recovery.
The Bombay Stock Exchange 30-share index, Sensex, which had gained 567.50 on Monday, rose further by 260.42 points to 16,676.75. Intra-day, it touched a high of 16,714.70.
Similarly, the broad-based National Stock Exchange index Nifty rose by 81.40 points to 5,001 led by metals, realty, banks and IT.
Brokers said there was good buying in fundamentally strong stocks available at lower prices following the recent meltdown and the market was completely moving on cues from the world equity markets.
They said investor confidence improved considerably after US consumer spending increased 0.8%, the most since February. This pushed up the Asian stocks higher and led to strong openings in Europe.
Back home, GDP growth was just 7.7% for the quarter ended June 30, from 8.8% in the corresponding period last year but did not have much impact on the market.
Finance minister Pranab Mukherjee termed the growth as disappointing and said hard work was needed by all sections, including industry and farmers, to ensure inclusive growth.
The two most-heaviest, with 20% weight on the Sensex - Reliance Industries and Infosys gained 3.64% and 1.96%.
The metals sector index gained the most, up 3.74% to 12,097.10, followed by realty -- 3.62% to 1,739.58. The bank index rose 2.24% to 10,904.24 and IT, by 2.08% to 5,061.83.