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Sensex cheerleader as industry blazes ahead

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BS Reporter Mumbai
Last Updated : Jun 14 2013 | 5:37 PM IST
Index spurts 425 points to climb back above 14,000.
 
The stock market was on a bull run on Friday with both major indices, the Sensex and the Nifty, hitting lifetime highs on the back of the fastest industrial production figures in 11 years during November, a sharp rise in banking stocks after the government lowered minimum bond holding requirements for banks and frantic short covering in the derivatives segment.
 
The Bombay Stock Exchange's benchmark Sensex hit its lifetime high of 14,056.53, a gain of 425.82 points, or 3.12 per cent, while the S&P CNX Nifty rose 110.20 points, or 2.80 per cent, to 4,052.45.
 
The BSE Bankex saw the sharpest rise among sectoral indices at 6.79 per cent to 7,783.25. The National Stock Exchange's Bank Nifty was up 7.12 per cent to 6,157.95. The scrip of ICICI Bank, the second biggest lender, hit a lifetime high of Rs 970.10, up 8.49 per cent from yesterday's close.
 
"While the Brazilian and South Korean markets are off their highs posted in December, the Indian market continues its upward march. It seems global investors are willing to give higher valuation for India because we are posting superior growth," said an economist with ICICI Securities.
 
Sixty-three stocks hit their all-time high levels on Friday including Bharti Airtel (Rs 664.70), NDTV (Rs 314.75), Tech Mahindra (Rs 1,871.35), Deccan Aviation (Rs 161.35), IDFC (Rs 86.10) and J&K Bank (Rs 700).
 
TCS shares also rose to a historic high of Rs 1,325.30 on expectations of robust growth in its third-quarter earnings. Its market capitalisation now stands at Rs 1,20,769.03 crore.
 
Foreign funds were net buyers to the tune of Rs 1,000 crore on index futures while they were net sellers in the cash segment by just over Rs 24 crore.
 
"There was frantic short covering in F&O. The market had bottomed out at 3,814 levels on the Nifty. We are expecting the Nifty to move into 4,100 and the Sensex into the 14,500-15,000 levels," said Alex K Mathew, head of research with Geojit Financial Services.
 
"Globally we are seeing easing of commodity prices, especially metals and crude oil. This will ease some concerns in domestic markets on rising inflation," added the ICICI economist
 
Three of the top five gainers in the Sensex were banking stocks "" ICICI Bank, HDFC Bank (up 6.39 per cent to Rs 1,063.25), SBI (up 6.39 per cent to Rs 1,223.45) "" as the easing in the statutory liquidity ratio will enable banks to sell their low-yielding bonds and lend at higher rates. Bhel (up 4.77 per cent to Rs 2,257) and Bharti Airtel were the other top gainers. All the 30 Sensex stocks ended in positive territory.
 
Among the sectoral indices, other top gainers were the BSE Oil and Gas Index (up 2.77 per cent), the BSE PSU Index (up 2.75 per cent) and the BSE IT Index (up 2.24 per cent).
 
"We have no doubt that the market is on a strong growth path. But investors should brace themselves to sharp day-to-day swings in the market," said Kumar Nair, managing director of Transwarranty Finance Ltd.

 
 

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First Published: Jan 13 2007 | 12:00 AM IST

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