Sensex rallies 245 pts on economic growth prospects
Mumbai: The benchmark BSE Sensex today extended gains for the second straight session by rallying over 245 points to close at 27,371.84 as the government’s projection of 5.5 per cent GDP growth boosted economic sentiments.
The 30-share index after opening on a strong note at 27,292.55 continued its upward journey to hit the day’s high of 27,497.12. But, profit-booking towards the fag-end at improved levels trimmed gains and finally settled 245.27 points, or 0.90 per cent, higher at 27,371.84.
The gauge had gained 416.44 points in yesterday’s trade.
On similar lines, the wide-based Nifty of the National Stock Exchange after shuttling between 8,263.45 and 8,208.60 points, ended 65.90 points, or 0.81 per cent, higher at 8,225.20.
Stocks of heavy-weight RIL hogged the limelight on a flurry of buying and ended 2.26 per cent higher at Rs 900.15 on speculations that the company may launch its much-awaited telecom services next year, rendering major support to the indices.
Meanwhile, the Finance Ministry’s Mid-Year Economic Review has said that India’s GDP is expected to rise to 5.5 per cent in the current fiscal from 4.7 per cent last year on back of improving macro-economic situation.
The strong buying momentum over the past two sessions has been driven by a firming trend on global markets after the Federal Reserve said on Wednesday a rate hike was unlikely in the short-term, brokers said.
Globally, trends at other Asian markets too remained bullish and European markets were higher in their opening trade, influencing trading sentiments here.
Expectations of acceleration in reforms process after the Cabinet’s clearance to the Constitutional Amendment Bill on GST too triggered buying activity, they said.
Of the 30 Sensex constituents, 21 ended with gains led by Hindalco, ICICI Bank, Tata Power, Sesa Sterlite, Wipro, TCS, Coal India, L&T, NTPC, Dr Reddy, Infosys, HDFC Ltd, Tata Steel, ONGC, M&M and Tata Motors and rose between 0.20 and 2.95 per cent.
Sectorwise, BSE IT index gained the most by soaring 1.95 per cent followed by Metal index (1.79 pc), Oil & Gas (1.48 pc), Capital Goods indes (1.29 pc), Power index (1.28 pc) and Banking index (0.75 pc).
Small-cap index also rose 0.57 per cent and Mid-cap Index by 0.36 per cent.