The BSE benchmark Sensex today regained 19,000-level after two weeks by climbing 285.30 points on the back of robust gains in HDFC, ICICI Bank and L&T on hopes of a bigger-than-expected rate cut,amid government announcing measures to boost exports in foreign trade policy.
The 30-share Sensex resumed lower at 18,695.34 but recovered afterwards and further gained momentum in the second half of trade to settle at 19,016.46 a gain of 285.30 points or 1.52 per cent. This level was last seen on April 2.
Similarly,the National Stock Exchange Nifty rose by 94.40 points,or 1.66 per cent,to end at 5,783.10 led by consumer durable,capital goods and banking sector shares.
With over 1,300 stocks rising,investor wealth surged by Rs 70,000 crore as market-capital stood at Rs 65 lakh crore mark.
With a view to boost exports,the government has announced several measures in foreign trade policy including extension of the popular Export Promotion Capital Goods scheme to all sectors and sops for Special Economic Zones (SEZs).
Interest-rates related stocks like HDFC,ICICI Bank,HDFC Bank,SBI,Tata Motors,M&M attracted good buying support on hopes of rate cut by RBI on May 3. L&T,Bharti Airtel,RIL,ITC,ONGC also were in demand. Buying was seen across the board as 12 out 13 sectoral indices closed with gains of up to 2.78 per cent.
What is clearly supporting the rise is the expectation of rate cut,fall in prices of gold and crude oil which is expected to bring down the CAD. On the other hand,there is no news on political instability…sentiments are extremely bullish, said Nagji K Rita,CMD,Inventure Growth and Securities.
Gold rebounds on fresh buying
New Delhi: Snapping a four-day losing streak,gold prices rebounded on Thursday by gaining Rs 250 to Rs 26,600 per 10 grams in the national capital on fresh buying by stockists and retailers amid recovery in overseas markets. However,silver remained weak for the fifth day by losing Rs 300 to Rs 45,400 per kg on lack of buying support from industrial units and coin makers.
Sentiment in gold improved as stockists and retailers indulged in fresh buying at existing lower levels. A recovery move in overseas markets,as the biggest slump in three decades spurred demand for the precious metal from investors and consumers also supported the rebound in gold.
Gold in overseas markets,which normally set price trend on the domestic front,rose 0.4 per cent to $1,381.55 an ounce in Singapore. Prices touched $1,321.95 on April 16,the lowest since January 2011.
On the domestic front,gold of 99.9 and 99.5 per cent purity recovered by Rs 250 each to Rs 26,600 and Rs 26,400 per ten grams after losing Rs 3,250 in last four sessions.