The Bombay Stock Exchange benchmark Sensex today surged to 5-week high, adding 277 points on buying by foreign funds amid indications that India may grow faster in the coming months and firm overseas markets.
The 30-stock Sensex, which had gained 152 points in the last two sessions, moved up another 276.69 points, or 1.71% to 16,466.05 -- the level of December 8.
The 50-scrip NSE index Nifty breached the 4,900 mark to close at 4,967.30 -- up 93.40 points, or 1.92%. RIL and Infosys, the top two with heaviest weight on the Sensex, logged in strong gains and were up 3.78% and nearly 1% respectively.
Brokers said the trading sentiment was buoyed amid reports that the government may revise GDP growth to 8 % next fiscal. The Budget should aim at raising the GDP growth rate to 8% in 2012-13, from the expected 7% in the current fiscal, Planning Commission Deputy Chairman Montek Singh Ahluwalia has said in an interview.
Brokers said that after avoiding investments in the recent past, FIIs have been on a buying spree of late on hopes that Indian companies may perform better in the coming quarters amid signs that RBI will cut lending rates. Besides, firm markets in Asia and Europe boosted investor confidence, they added. IT stocks made gains, with HCLT gaining 4.61% on announcing strong results for the October-December quarter. The capital goods index rose 3.73 % to 9,843.66, followed by the metals index -- up 3.66% at 11,171.21.