Buoyed by FII flow & Anil peace talk, sensex hits 17k
Investors Richer by Rs 83,000 Crore As Index Gains 384 Points On IIP Numbers
A strong rally in the second half of Monday's session took the BSE sensex past the 17K mark once again. Although the news about a probable patch-up between the two Reliance groups worked as a sentiment booster in early trades, and a surprisingly strong industrial production numbers trickled in, the rally started at about 1.30 pm. Market players said the main reason for the day's rally was some sudden buying orders by FIIs and short covering by speculators late in the session.
The sensex opened slightly higher and picked up some early gains, but the late rally helped it close 384 points higher at 17,027. The day's gain was the highest single-session rise for the sensex in seven weeks. NSE's nifty too closed above the technically important 5K mark, at 5,054, up 109 points on the day. Investors were richer by Rs 83,000 crore with BSE's market capitalisation now at Rs 56.6 lakh crore.
In Monday's mid-session, the government announced that industrial output in August grew at 10.4% on the year, the fastest in the last 22 months. Data showed as stimulus money helped revive demand, factories produced more big-ticket household goods and cars. Finance secretary Ashok Chawla was quoted as saying that the data pointed to signs of recovery and the output could improve further. During the day, all but one stock from the two Reliance groups ended higher. The only exception was the Reliance Communications. Investors in the two groups were richer by about Rs 14,500 crore. Institutional dealers said some foreign investors are buying stocks from the two groups in anticipation that the ongoing dispute could get over soon. Among the sensex shares, SBI rallied the most, closing 5.2% higher at Rs 2,173. Among other index gainers were Reliance Infra, up 5% at Rs 1,357 and Wipro, up 3.8% at Rs 574.
Investors fancy infra stocks Chennai:
The double digit factory output data lifted markets overall. But within sectors, stocks with an 'infra' tag attracted investors the most on Monday. "The infrastructure stocks which saw a sharp correction in 2008, started bottoming out in March 2009, mainly due the substantial rise in government spending and a low interest rate regime,'' said S Vignesh, an analyst with Paterson Securities. "Going ahead, the planned infrastructure spending from the government, which is committed to keep the GDP growth around 8% and a renewal in the economic activity —indicated by healthy IIP figures— make this sector more attractive for the next 1-2 years.'' Stocks such as Era Infra, Gammon, IRB Infra, Lanco Infratech, Simplex Infra and Supreme Infra scaled their new 52-week peak at the BSE on Monday. TNN
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