Investor wealth across listed stocks today surged about Rs 95,500 crore on the back of robust buying as market participants cheered the government’s decision to hike diesel prices and US Federal Reserve approved a new economic stimulus plan to spur growth.
The BSE benchmark index Sensex today closed at 18,464.27,up 443.11 points,or 2.46 per cent in sync with a rally in the global market. In the process,the investor wealth moved up by Rs 95,436.89 crore to Rs 63.63 lakh crore.
Today’s closing of 18,464.27 points is a 14-month high since Sensex closed at 18,518.22 on July 26,2011.
The 50-share NSE index Nifty today rose by 142.30 points,or 2.62 per cent to 5,577.65.
Across 13 BSE sectoral indices,11 indices rose with Realty,Metal and Bankex jumping 4-5 per cent. Capital Goods,Auto,Oil&Gas and IT shares logged 2-3.5 per cent gains.
“Indian markets saw a buying frenzy on the back of strong international cues and short covering. The monthly mortgage debt buying program in the US is expected to pump in liquidity into the system. Apart from the QE3,buying interest in certain pockets was seen on back of hopes of hike in FDI,” Inventure Growth & Securities Chairman & MD Nagji K Rita said.
Analysts said there is a hope that the government will take more bold steps on economic reforms after hiking diesel price by Rs 5.63 per litre.
According to Kishor Ostwal,CMD,CNI Research,the government’s move to hike diesel prices is being seen as a big act of breaking the perception of policy paralysis. Market was waiting for such an event and hence the market rallied smartly,he added.