Bank stocks drive BSE index to all-time high. |
Riding on a strong sentiment, the Sensex crossed the 7500-point mark today. The rally, which took the Sensex up by 1.11 per cent (82.35 points) in a single session, saw nearly 210 stocks reach their life-time high. Of these, 7 were from the Sensex basket. A total of 233 stocks hit the upper end of the circuit filter during intra-day trade. |
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In the past two trading sessions alone, investor wealth had gone up by Rs 43,959 crore to touch Rs 19.62 lakh crore. With this, the Sensex has gained 4.99 per cent over the last one month. |
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While rising valuations coupled with possible deterioration in fundamentals were getting market participants nervous, strong liquidity, especially from foreign funds, was keeping the spirits high, brokers said. |
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A quick survey of 22 domestic fund managers and brokers done by Business Standard showed that the bullish undertone was reasonably strong. |
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About 45 per cent of the respondents expected markets to go up further, while 27 per cent felt that the markets were getting overheated and hence, it was time for consolidation. The remaining 27 per cent could not make up their mind either way. |
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Today's market rally was led by banking stocks, which took the BSE Bankex index up by 4.51 per cent or 194.78 points. Among banking stocks, ICICI Bank surged 7.7 percent to Rs 489.75, HDFC Bank rose 4 per cent to Rs 674.6 and State Bank of India gained 3 per cent at Rs 743.05. |
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Three other sectors -- PSU index (1.87 per cent), FMCG (1.10 per cent) and metals (1.14 per cent) -- contributed to the market spiral on Monday. But four sectors -- tech (-0.25 per cent), consumer durables (-0.12 per cent), health care (-0.90 per cent) and information technology (-0.85 per cent) -- suffered setbacks in the otherwise bullish market. |
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Software stocks dipped after Microsoft and Google set quarterly guidance below Wall Street expectations on Friday. Tata Consultancy Services fell 0.8 per cent to Rs 1,283.20 and Infosys Technologies dropped 0.6 per cent to Rs 2,222.30. |
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On the other hand, Oil and Natural Gas Corporation gained 2.8 per cent to Rs 961.65 after crude oil prices surged beyond the $58-a-barrel mark. Maruti Udyog closed 0.6 per cent higher at Rs 464.65 after reporting a strong growth in first quarter profits. |
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That the market gains covered a wide spectrum could be seen from the fact that even the broad-based indices gained -- BSE 100 (1.08 per cent up), BSE 200 (0.99 per cent), BSE 500 (0.92 per cent). |
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Overseas inflows have helped the index gain 12 per cent since the beginning of June. Foreign funds bought a net $1.3 billion worth of Indian equities in June, and have already poured in more than that in July. Fears that the rupee may appreciate faster after last week's revaluation of the yuan have also prompted some overseas players to rush in with funds. |
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