Sensex soars 385 pts to over 1-week high, metals, banking shine
The BSE benchmark Sensex on Thursday vaulted 385 points to end at a over one-week high of 19,902.07 helped by rise in metal, banking and capital goods shares.business Updated: Oct 04, 2013 02:11 IST
The BSE benchmark Sensex on Thursday vaulted 385 points to end at a over one-week high of 19,902.07 helped by rise in metal, banking and capital goods shares, on firming hopes that the partial US government shutdown will force the Fed to avoid tapering its stimulus programme soon.
Domestic stock markets were also supported by heavy purchases in IT stocks like Infosys and TCS as some foreign brokerages turned bullish ahead of September quarter earnings.
The 30-share index, which had gained over 137 points in the previous session. shot up further by 384.92 points, or 1.97 % to 19,902.07 -- the highest level since September 24 (19,920.21).
27 stocks out of the Sensex constituents ended higher led by Sesa Goa, Bajaj Auto, HDFC Ltd, Hindalco, TCS and Tata Power. HeroMotocorp, ICICI Bank, Jindal Steel, L&T, RIL, Infosys and Wipro also helped cement gains.
Similarly, the broad-based National Stock Exchange index Nifty gained 129.65 points, or 2.24 %, to end at 5,909.70. Also, SX40 index, the flagship index of MCX-SX, closed at 11,853.27, up 233.36 points or 2.01 %.
"With the US government shutdown, the likelihood of the Fed tapering its quantitative easing program anytime in the immediate future is reduced, thus helping the Indian equity and currency markets," said Raghu Kumar, co-founder of brokerage firm RKSV.
Trading sentiment also strengthened after rupee gained against dollar and was last trading at 61.85 levels compared to 62.46 on Tuesday, as the US government entered the third day of its partial shutdown.
Meanwhile, the Indian government plans to increase capital infusion in PSU banks to help them enhance exposure to auto, consumer durables sectors. Besides, ahead of the RBI's central board meet, the central bank chief Raghuram Rajan today met finance minister P Chidambaram and is understood to have discussed economic issues.
Sectorally, the BSE Metal sector gained the most by rising 3.94 %, followed by BSE Bankex (3.41 %), BSE Capital Goods index (2.82 %) and BSE Oil & Gas index (2.46 %).