Sensex surges to 2-month high

Tuesday, January 6, 2009 at 5:01 am

The Bombay Stock Exchange benchmark Sensex today (January 5) surged to a two-month high, adding over 317 points on buying by funds after the RBI slashed interest rates to a record low and the government unveiled a second stimulus package to boost the economy.

The government’s step to holster economic growth on Friday (January 2) had an immediate impact as the Sensex strengthened by 317.38 points at 10,275.60, a level last seen on November 10. It touched the day’s high of 10,306.17 and a low of 10,069.11 points.

The 50-share National Stock Exchange index Nifty rose by 74.70 points at 3,121.45, after touching the day’s high of 3,131.95 and a low of 3,056.45 points.

The rupee climbed to its strongest in a week on speculation that the steps will encourage overseas investors to boost holdings in local assets.

Stocks in the segments of metals, refineries and banks led the rally as the government plans to give Rs 20,000 crore to boost the capital of state-run lenders and provide Rs 25,000 crore for non-bank finance companies.

Reliance Industries shot up 6.38 per cent, Tata Power 7.76 per cent, Sterlite Industries 9.82 per cent, Infosys Technologies 3.85, and Tata Steel 6.73 per cent. All these counters combined carry nearly a 38 per cent weight in the Sensex.

The metal sector index gained the most, by 5.54 per cent at 5,869.08, on the back of a steep rise in stocks of Tata Steel, Sterlite Industries, SAIL, Jindal Steel and Hindustan Zinc.

The oil and gas index was the second-best performer, gaining 5.10 per cent at 6,559.66, after heavy-weight Reliance Industries surged 6.38 per cent at Rs 1,365.75 and ONGC by 6.43 per cent at Rs 723.75.

The banking segment index spurted 3.53 per cent at 5,874.87. State Bank of India, the countrys largest, increased 2.35 per cent to Rs 1,361.20. ICICI Bank, second-biggest private lender, rose 6.04 per cent to Rs 499.65. Both stocks recorded their highest rise in more than two months.

The capital goods index by 2.83 per cent at 7,493.25, the IT index by 2.40 per cent at 2,339.10, the PSU index by 1.78 per cent at 5,580.18, the power index by 1.75 per cent at 1,941.52, and the teck index by 1.46 per cent at 2,018.68.

The auto index rose by 1.30 per cent at 2,553.82, the consumer durables index by 1.21 per cent at 2,028.30 and the healthcare index by 0.05 per cent at 2995.33.

With buying widely spread, the midcap index rose by 1.78 per cent at 3,451.64 and the smallcap index by 1.21 per cent at 3,917.37.

However, the FMCG index fell by 0.53 per cent at 1,996.03 and the realty index by 0.33 per cent at 2,464.28 on profit selling.

(Agencies)

( This post is from an independent writer. The opinions and views expressed herein are those of the author and are not endorsed by APakistanNews.Com.)

Sensex surges to 2-month high

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