Sensex surges 235 pts on GDP growth, global cues
The Bombay Stock Exchange benchmark Sensex gained 235 points to a one-month high today on heavy buying by funds influenced by strong GDP growth of the Indian economy and rising exports amid firming global cues.business Updated: Sep 01, 2010 18:42 IST
The Bombay Stock Exchange benchmark Sensex gained 235 points to a one-month high on Wednesday on heavy buying by funds influenced by strong GDP growth of the Indian economy and rising exports amid firming global cues.
The Sensex shot up by 234.75 points, or 1.31 per cent, to 18,205.87, translating into its highest gain in 10 weeks to a level last seen on August 4, led by a rise in stocks of raw material producers as investors speculated that economic expansion will boost profitability and demand. The Sensex had lost 60.99 points yesterday.
Similarly, the broad-based National Stock Exhange index Nifty rose by 69.45 points, or 1.29 per cent, to 5,471.85.
Renewed buying by foreign funds, a rise in exports for the ninth straight month in July, strong auto sales, impressive 8.8 per cent GDP growth, a rebound in China's manufacturing activity and smart growth in Australia's economy in Q2 also helped the Sensex post impressive gains.
Index heavyweight Reliance Industries snapped its seven-day losing streak and gained Rs 17.60 to Rs 936.45, while the second most valuable scrip on the BSE, Infosys Technologies, rose by Rs 68.65 to Rs 2,775.75.
The metal sector index gained the most, rising 3.02 per cent to 15,429.53 after Sterlite Industries, the largest copper producer, gained Rs 5.40 to Rs 156.55 on the back of a surge in metal prices in international markets.
Similarly, Tata Steel rose by Rs 15.35 to Rs 537.75, its highest close since August 10.
From the BSE-30 component, 27 counters ended with gains while only three finished with losses. All the sectoral indices ended in the green, higher by between 3.02 per cent and 0.28 per cent. Among the major gainers, RCom spurted by 4.94 per cent, Hindalco by 4.48 per cent, Bharti Airtel by 3.10 per cent, DLF by 2.57 per cent and R-Infra by 2.10 per cent.
Amongst sectoral indices, the BSE-Realty index jumped by 99.15 points, or 2.98 per cent, the BSE-Tech index by 75.93 points, or 2.25 per cent, and the BSE-IT index by 107.72 points, or 2.00 per cent. Auto stocks initially were in keen demand on higher sales growth, a major part of the gains were pared on late profit-booking.
Barring China, which finished down by 0.50 per cent, other Asian stocks ended higher on Wednesday. Key indices from Hong Kong, Japan, Singapore, South Korea and Taiwan closed up by about 0.43 per cent and 1.26 per cent. European markets were trading higher in their late morning deals. The CAC was up by 1.50 per cent, the DAX by 0.43 per cent and the FTSE by 1.09 per cent. US stock index futures, too, indicated a firm opening on Wall Street on Wednesday.