Sensex gains 245 pts on better growth prospects, global cues

Mumbai: The BSE benchmark Sensex today surged by 245 points to one-week high of 27,371.84 as investor sentiment got a boost from government estimate of 5.5 per cent economic growth this year amid strong global cues.

The 30-share BSE index resumed strong tracking Asian indices and remained in the positive terrain throughout the day as investors scrambles to grab shares IT, metal, oil&gas, capital goods, teck and power shares.

The benchmark index finally settled at 27,371.84, up 245.27 points or 0.90 per cent from its previous close, extending gains for the second day in a row. Yesterday, it had soared by 416.44 points or 1.56 per cent.

The 50-issue NSE Nifty also firmed up by 65.90 points or 0.75 per cent to end above 8,200-mark at 8,220.35.

In all, 21 out of 30 Sensex scrips gained while others finished with losses. ICICI Bank was at 2.95 per cent, Hindalco 2.64 per cent, Coal India 2.49 per cent, Wipro 2.33 per cent, Tata power 2.27 per cent and RIL 2.26 per cent were the biggest gainers.

“Strong recovery seen in US and European markets as well as in Asian markets was a strong reason for today’s market performance…

“Among other market moving events, the Finance Minster today tabled the ‘Mid-year Economic Analysis 2014-15’ in Parliament which stated that GDP is expected to rise to 5.5 per cent in the current financial year as against 4.7% in the previous fiscal,” said Hiren Dhakan, Associate Fund Manager, Bonanza Portfolio.

Meanwhile, foreign portfolio investors sold shares worth Rs 874.89 crore yesterday, as per provisional data.

“Markets saw major movements during the current week. Clearly, signs of slowdown in global economic growth was the major concern that led to selloff in the early part of the week,” said Sanjeev Zarbade, Vice President, Private Client Group Research, Kotak Securities.

However, markets bounced back post dovish comments from the US Fed, he added.

Bajaj Auto at 1.58 per cent, Bharti Airtel 1.54 per cent, HUL 1.49 per cent, ITC 1.37 per cent, Cipla 1.20 per cent and SBI 0.91 per cent were the main losers.

Among the BSE sectoral indices, IT rose by 1.95 per cent, metal 1.79 per cent, oil&gas 1.48 per cent, consumer goods 1.29 per cent and power 1.28 per cent.

The total market breadth was slightly positive as 1,480 stocks closed with gains while 1,402 that finished with losses.

“Market carried on to the momentum as seen yesterday… The truth is that global risk continue, especially to Europe and oil countries …. There is a high amount of doubts as world is slowing down and many important countries like Euro, OPEC, China and Russia are in structural issue.

“In the mean time, GST has come as a surprise development of winter session,” said Vinod Nair, Head, Fundamental Research, Geojit BNP Paribas Financial Services.

Asian stocks closed robust, led by Japanese stocks. Key indices in Chin, Hong Kong, Japan, Singapore, South Korea and Taiwan closed higher 1.11-2.39 per cent.

European stocks were also trading better in their late morning deals. The CAC was up by 0.30 per cent, the DAX by 0.44 per cent and the FTSE by 0.70 per cent.

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