BSE Sensex jumps 467 pts to close near 3-year high as market mood rises on RBI repo rate

BSE Sensex powered by R Rajan creating positive mood on RBI repo rate and end of US shutdown.

Written by PTI | Mumbai | Published: October 18, 2013 10:15:11 am

The BSE Sensex on Friday surged 467 points while the NSE Nifty gained 143.5 points,marking their highest close in nearly three years as banks rose on value-buying while blue chips gained as foreign investors extended their buying streak to a tenth consecutive session.

Reliance Industries (RIL) rose 2.87 per cent,while ICICI Bank jumped 4.55 per cent.

The BSE Sensex rose 2.29 per cent to close provisionally at 20,882.89 and the broader NSE Nifty ended 2.37 per cent higher.

Foreign institutional investors bought 11.09 billion rupees worth of Indian shares on Thursday,a tenth consecutive session of purchases that bought their total to 78.47 billion rupees.

Earlier,snapping its two-day losing streak,the BSE Sensex rose by more than 400 points to 20,842 on fresh buying by funds amid a firming market trend on other Asian bourses. Gains are being led by defensive and banking shares,especially ICICI Bank.

BSE Sensex being driven by positive bytes from RBI Governor Raghuram Rajan and the end of the US shutdown fiasco even though warning by various rating agencies on the Indian economy are weighing heavy on bourses.

RBI is largely expected to raise the repo rate by 25 basis points,its second consecutive monthly hike. The BSE banking index is up 2.5 per cent,with stocks such as ICICI Bank up 2.6 per cent. Lupin gains 1.3 per cent,while Sun Pharmaceuticals Industries is up 0.8 per cent. In consumer goods stocks,

ITC Ltd is up 1 per cent.

Larsen & Toubro (L&T) gains 1 per cent ahead of its July-September earnings later in the day.

BSE Sensex rose nearly 118 points in early trade. The 30-share barometer,which had lost over 192 points in the previous two sessions,rose 117.65 points,or 0.58 per cent,to 20,533.16 points with consumer durable,banking,realty and FMCG sector stocks leading the rise.

The NSE Nifty moved up by 41.70 points,or 0.69 per cent,to 6,087.55.

Brokers said fresh buying by funds amid a firming trend on other Asian bourses mainly buoyed the trading sentiment.

Bankex is the best performing index today,up 2 per cent. ICICI Bank shares are up 3 per cent,taking their gains for the month to 12.5 per cent.

The rupee rallied to a two-month high of 60.92 against the US dollar in late morning deals today on persistent selling of the USD by banks and exporters on the back of sustained capital inflows from foreign funds.

The domestic currency resumed higher at 61.19 per dollar as against the last closing level of 61.23 at the Interbank Foreign Exchange (Forex) Market.

It firmed up further to a two-month high of 60.92 per dollar before quoting 61.01 per dollar at 1050 hours,showing showed a gain of 22 paise from its last close.

It moved in a range of 60.92 and 61.20 per dollar during the morning deals.

Among other Asian markets,Hong Kong’s Hang Seng index rose by 0.72 per cent,while Japan’s Nikkei was up by 0.08 per cent in early trade today.

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