Sensex crosses 16K level, records single biggest gain
The BSE index touches a new high as investors step up buying after US Federal Reserves' decision to cut interest by 0.5 per cent.business Updated: Sep 19, 2007 19:04 IST
The Bombay Stock Exchange's barometer Sensex on Wednesday crossed the magical 16,000-point in style, with the single biggest all-time gain of 653 points, as a cut in US interest rates triggered a buying spree in Mumbai.
The 30-share Sensex shot up by 653.63 points to 16,322.75, after touching a high of 16,335.30 and a low of 15,940.79 points.
Similarly, the wide-based National Stock Exchange surged to a new record peak of 4,739.90 and ended at 4,732.35, showing a hefty gain of 196.15 points. Though, it touched a low of 4,550.25 during the day.
Reliance Industries' scrip gained 5.6 per cent to become the country's first firm to have a market capitalisation of over Rs three trillion.
Major support to the market came from stocks in realty, metal and banking segments.
"The market has rallied largely because of the (US) Fed move and the outlook remains bullish as lower interest rates in the US are likely to translate into downward pressure on interest rates globally and give upward boost to other assets like equities," Enam Securities economist Sachchidanand Shukla told PTI.
Metal segment index gained the most by 461.22 points at 12,546.34 followed by realty index with a gain of 461.13 points at 8464.54. Bank index rose by 400.91 points at 8691.45.
"The fundamentals are strong for the Indian market. And subprime issue would not have that much impact here now," Asika Stock Broking Ltd's Paras Bothra said.