FDI row ends; Sensex up 329 pts to 19-month high
30 Nov 2012 7:47 AM IST
Buoyed by ending the logjam over FDI issue in Lok Sabha on Thursday amid some other positive factors lifted the benchmark sensex up by a massive 329 points, highest gain in over last two months, to end above 19K-level at nearly 19-month high of 19,170.91, completing three-session of gaining string.
After wastage of four days in Lok Sabha, logjam over the Foreign Direct Investment (FDI) in multi-brand retail ended with Speaker Meira Kumar allowing a debate with voting as per some opposition parties demand. Leader of Opposition Sushma Swaraj assured her smooth functioning of the House. As a result, operators as well as investors rushed to cover their short positions on the last day of November series, hoping to start fresh reforms process in the current Winter session of Parliament.
Investment banking major, Goldman Sachs, in a report on Thursday said that Indian economy is likely to grow by 6.5 pct in 2013 and further to 7.2 pct in 2014 following favourable external demand outlook and domestic structural reforms push, also boosted the sentiment. On Tuesday, credit rating agency Moody's already kept the India's outlook stable.
Firm global stocks and continued buying by Foreign Institutional Investors (FIIs) too kept the market tempo upbeat. FIIs bought shares worth a net Rs 1082.74 crore as per provisional data from the stock exchanges.
The Bombay Stock Exchange 30-share barometer resumed better and continued to move upwards after the news of ending the deadlock on FDI in Lok Sabha filtered in. Sensex later touched a high of 19,205.33 before concluding at 19,170.91, highest closing since April 28, 2011 when it had ended at 19,292.02.
The wide-based 50-issue Nifty of the NSE also flared up by 97.55 points or 1.70 pct to end at 19-month high above 5,800-mark at 5,825.00, level not seen since April 27, 2011 when it had settled at 5,833.90. Sharp rise in heavyweights like ICICI Bank, HDFC Bank, HDFC, Tata Motors, L&T, ITC, RIL, Bajaj Auto and HUL together added more-than 275 points to the sensex surge.
Asian markets, barring China which closed weak, ended with gains between 0.92 and 1.15 per cent on overnight smart rally on Wall Street after US President Barack Obama and House Speaker John Boehner expressed optimism about a deal to solve the upcoming 'fiscal cliff'. European stocks too were quoting higher in the afternoon deals. The CAC was up by 1.18 pct, the DAX by 0.70 per cent and the FTSE by 0.77 per cent.
Kishor P Ostwal, CMD, CNI Research Ltd. said,' Nifty closed at multi-month highs as expected as it has crossed the resistance of 5,770. The main driver of the market was heavily short Indian markets which led to stunning rally. If market opens up with gap and sustain 5,840 even for 2 hours we may see Nifty 6000 next week.’
Twenty-six scrips out of the 30-share Sensex family ended in green while four finished in red. Hero Motocorp dropped by 1.03 per cent and Infosys 0.98 per cent. Eleven of 13 sectoral indices closed with gains while only BSE-IT and BSE-Teck finished with losses. The BSE-Realty was the top gainer with a rise of 3.38 per cent followed by Bankex 2.76 per cent, BSE-Auto 2.08, BSE-CG 1.55, BSE-CD 1.45, BSE-FMCG 1.29, BSE-Oil & Gas 1.28, BSE-Metal 1.12 and BSE-PSU 1.05.
After wastage of four days in Lok Sabha, logjam over the Foreign Direct Investment (FDI) in multi-brand retail ended with Speaker Meira Kumar allowing a debate with voting as per some opposition parties demand. Leader of Opposition Sushma Swaraj assured her smooth functioning of the House. As a result, operators as well as investors rushed to cover their short positions on the last day of November series, hoping to start fresh reforms process in the current Winter session of Parliament.
Investment banking major, Goldman Sachs, in a report on Thursday said that Indian economy is likely to grow by 6.5 pct in 2013 and further to 7.2 pct in 2014 following favourable external demand outlook and domestic structural reforms push, also boosted the sentiment. On Tuesday, credit rating agency Moody's already kept the India's outlook stable.
Firm global stocks and continued buying by Foreign Institutional Investors (FIIs) too kept the market tempo upbeat. FIIs bought shares worth a net Rs 1082.74 crore as per provisional data from the stock exchanges.
The Bombay Stock Exchange 30-share barometer resumed better and continued to move upwards after the news of ending the deadlock on FDI in Lok Sabha filtered in. Sensex later touched a high of 19,205.33 before concluding at 19,170.91, highest closing since April 28, 2011 when it had ended at 19,292.02.
The wide-based 50-issue Nifty of the NSE also flared up by 97.55 points or 1.70 pct to end at 19-month high above 5,800-mark at 5,825.00, level not seen since April 27, 2011 when it had settled at 5,833.90. Sharp rise in heavyweights like ICICI Bank, HDFC Bank, HDFC, Tata Motors, L&T, ITC, RIL, Bajaj Auto and HUL together added more-than 275 points to the sensex surge.
Asian markets, barring China which closed weak, ended with gains between 0.92 and 1.15 per cent on overnight smart rally on Wall Street after US President Barack Obama and House Speaker John Boehner expressed optimism about a deal to solve the upcoming 'fiscal cliff'. European stocks too were quoting higher in the afternoon deals. The CAC was up by 1.18 pct, the DAX by 0.70 per cent and the FTSE by 0.77 per cent.
Kishor P Ostwal, CMD, CNI Research Ltd. said,' Nifty closed at multi-month highs as expected as it has crossed the resistance of 5,770. The main driver of the market was heavily short Indian markets which led to stunning rally. If market opens up with gap and sustain 5,840 even for 2 hours we may see Nifty 6000 next week.’
Twenty-six scrips out of the 30-share Sensex family ended in green while four finished in red. Hero Motocorp dropped by 1.03 per cent and Infosys 0.98 per cent. Eleven of 13 sectoral indices closed with gains while only BSE-IT and BSE-Teck finished with losses. The BSE-Realty was the top gainer with a rise of 3.38 per cent followed by Bankex 2.76 per cent, BSE-Auto 2.08, BSE-CG 1.55, BSE-CD 1.45, BSE-FMCG 1.29, BSE-Oil & Gas 1.28, BSE-Metal 1.12 and BSE-PSU 1.05.
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