Pro-market China & pro-QE Janet push Sensex up 451 pts
19 Nov 2013 11:18 PM GMT
The rupee, which strengthened against the dollar for the third day, also supported local equities, which traded after a holiday on Friday.
The domestic currency gained 70 paise, the most in one and a half months, to 62.41 against the dollar on the day amid a sharp rise in local equities and dollar sales by exporters and banks.
The S&P BSE Sensex opened 171 points higher and stayed in positive territory through the day and ended at an almost two-week high of 20,850.74, a rise of 451.32 points, or 2.21 per cent. It was the biggest gain since 18 October.
Capital goods and bank stocks led all 13 BSE sectoral indices higher. HDFC Bank and Larsen & Toubro led gainers on the Sensex, which was boosted by ITC and Reliance Industries.
‘Positive global cues, optimism from US that they are not in a hurry to taper stimulus programme and a stronger rupee fuelled the rally. Banking and auto stocks were in favour,’ said Rakesh Goyal, Senior VP at Bonanza Portfolio Ltd.
The Hong Kong Hang Seng Index surged 2.73 per cent and the Shanghai Stock Exchange Composite Index rose 2.87 per cent amid a firming trend in Asia after China's government said it would carry out broad reforms.
US stocks had gained on Friday after Federal Reserve nominee Janet Yellen indicated the $85 billion of monthly bond purchases would continue, raising hopes of higher capital inflows in India and other emerging markets.
Brokers said sentiment also turned bullish as the rupee recovered. The RBI plans to inject Rs 8,000 crore into the financial system in bond purchases to ease liquidity.
The CNX Nifty on the National Stock Exchange flared up 132.85 points, or 2.19 per cent, to 6,189. The SX40 on the MCX Stock Exchange closed 247.21 points up at 12,366.6.
The domestic currency gained 70 paise, the most in one and a half months, to 62.41 against the dollar on the day amid a sharp rise in local equities and dollar sales by exporters and banks.
The S&P BSE Sensex opened 171 points higher and stayed in positive territory through the day and ended at an almost two-week high of 20,850.74, a rise of 451.32 points, or 2.21 per cent. It was the biggest gain since 18 October.
Capital goods and bank stocks led all 13 BSE sectoral indices higher. HDFC Bank and Larsen & Toubro led gainers on the Sensex, which was boosted by ITC and Reliance Industries.
‘Positive global cues, optimism from US that they are not in a hurry to taper stimulus programme and a stronger rupee fuelled the rally. Banking and auto stocks were in favour,’ said Rakesh Goyal, Senior VP at Bonanza Portfolio Ltd.
The Hong Kong Hang Seng Index surged 2.73 per cent and the Shanghai Stock Exchange Composite Index rose 2.87 per cent amid a firming trend in Asia after China's government said it would carry out broad reforms.
US stocks had gained on Friday after Federal Reserve nominee Janet Yellen indicated the $85 billion of monthly bond purchases would continue, raising hopes of higher capital inflows in India and other emerging markets.
Brokers said sentiment also turned bullish as the rupee recovered. The RBI plans to inject Rs 8,000 crore into the financial system in bond purchases to ease liquidity.
The CNX Nifty on the National Stock Exchange flared up 132.85 points, or 2.19 per cent, to 6,189. The SX40 on the MCX Stock Exchange closed 247.21 points up at 12,366.6.
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