Sensex firecracker rally closes at record high

BSE benchmark index flares up 594.24 points in last 3 sessions.

The Samp;P BSE Sensex surged 131 points to an all-time closing high of 21,164.52 on Thursday while the more broadbased Nifty closing at 6,299.15,providing its own brand of lights just ahead of the Diwali festival.

The level is the highest reached by the benchmark index since November 9,2010. The indices witnessed a sharp pull-back rally in the last half an hour of the trading session coming close to its all-time high level of 21,206.77.

The Sensex has flared up by 594.24 points in the last three session and added 1,784.75 points in October.

The Nifty extended gains and hit 6,300 levels for the first time since November 10,2010 with the bourses reporting their highest ever turnover which stood at approximately 5.3 lakh crore. The celebrations have begun early as there were fire crackers all over the bourses. It was a sensational trading session which ended just few points away from all time highs. The market notched up further gains amid strong rollovers witnessed in the banking,metals,financials and auto stocks, said Amar Ambani,Head of research,India Infoline.

The sentiment got a boost after Bank of India reported a rise of 2.05 times in net profit on a year-on-year basis. The move up was so strong that barring the BSE Healthcare index all the other sectoral indices ended in the positive terrain. The BSE Consumer durable index was the top gainer,up 2.65 per cent followed by PSU index up 2.5 per cent,Banking index up 2 per cent and BSE Metal 1.7 per cent.

Rakesh Goyal,senior vice president,Bonanza Portfolio,said,Positive global cues and the recent strengthening of the rupee along with the RBIs recent policy actions seem to have boosted the market sentiment. Continued buying from FIIs have also contributed to the rally. As festive season is coming,FMCG and auto segments can benefit during this period. The absence of any negative shocks in asset quality within PSU banking results announced so far fuelled markets hopes that the worst is over for them. Trading at abysmally low valuations,PSU banks rallied sharply by 5-20 per cent,Ambani said.