Sensex gains 272 points on hopes of global stimulus
The Sensex today gained 272 points to 16,949.83, its highest in a week, amid hopes that central banks globally, including RBI, may take steps to avert a worsening Eurozone crisis.mumbai Updated: Aug 20, 2012 13:41 IST
The Sensex today gained 272 points to 16,949.83, its highest in a week, amid hopes that central banks globally, including RBI, may take steps to avert a worsening Eurozone crisis that is likely to take a new turn after the highly-anticipated weekend polls in Greece.
The BSE benchmark index remained in the positive terrain mostly and closed higher by 271.95 points or 1.63%, helping it log its second straight week of gains, amid fund inflows in auto, banking and realty blue-chips.
The market received further support on firming trend in the Asian region and higher opening in European indices that tracked 1.2% gain in American stocks yesterday.
"Markets ended the day surprisingly strong... there were reports that Central Banks in the developed world are ready to help contain any negative fallout of Greek elections," said Dipen Shah, head of Fundamental Research, Kotak Securities.
In the 30-share Sensex, 27 scrips ended higher led by Tata Motors which rallied 5.75% today after suffering its biggest drop in two weeks yesterday.
ICICI Bank, HDFC Bank and SBI closed with 1-3% gains. In the auto pack, Maruti Suzuki, M&M and Hero MotoCorp ended 2.3-2.7% higher. Index heavyweights ITC, Reliance and Infosys gained in the 1-1.6% range.
Realty stocks also attracted buying on expectations that a cut in interest rate would boost home sales. RBI is widely expected to cut lending rates in its June 18 policy review.
"All eyes are on the Greece election outcome on Sunday which will shape the likely future of Eurozone," said Shanu Goel, senior research analyst, Bonanza Portfolio.
The 50-share NSE index Nifty rose by 84.30 points, or 1.67% to 5,139.05, after toucing a high of 5,146.20.
Meanwhile, the rupee after closing weak at 55.80 a dollar yesterday was last trading today at 55.71.