Sensex breaches 16K, closes at year high
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Last Updated: Tuesday, September 08, 2009, 08:55
Mumbai: For the first time this year, the benchmark Sensex closed above 16,000 points on a strong rally sparked by positive global cues and improved rain in many parts of the country.

The National Stock Exchange's 50-share Nifty also closed at its highest level since May 30, 2008 at 4,782.90 points.

Domestic indices moved up in tune with the global stocks, which surged following a decision by G-20 Finance Ministers in London past week-end to continue with stimulus packages to counter global economic downturn.

"The markets moved up today in tandem with the global peers. As the Asian and European markets remained positive today, a bullish investor sentiment engulfed domestic markets," said SMC Global Vice President Rajesh Jain said.

The 30-share Sensex on the Bombay Stock Exchange closed the day at more than 15-month high of 16,016.32, a rise of 327.20 points, or 2.09 percent, over its previous close.

Nifty gained 102.50 points to close at 4,782.9.0.

Marketmen said investor sentiment was further boosted as confidence of India Inc grew after improved rainfall in many parts of the country in the past few days. Strong response to the initial public offer of Oil India, which opened for subscription today also buoyed investors, they added.

Broker Mahindra C Shah said FIIs and operators taking cues made heavy purchases in realty, metal and bank shares.

The government's estimate that economy would economy would grow by more than six percent this fiscal also helped trigger a rally.

India's largest truck manufacturer by sales Tata Motors shot up by whopping 11.32 percent after its ADR surged on Friday. Other big index gainers included Reliance Comm at 6.62 percent, ICICI Bank at 6.01 percent, Jaiprakash Asso at 5.99 percent, Sterlite at 5.38 percent and DLF 5.03 percent.

The market breadth was strong, with 2,243 gainers against 589 losers on the BSE.

Analysts said the market is expected to remain bullish for a short-term on signs of improving global economic indicators as its has breached the crucial resistance level.

The BSE Realty index spurted by 5.49 percent, the Metal Index by 3.95 percent and the Bankex by 3.10 percent.

The BSE smallcap index also gained 2.83 percent and the Midcap index by 2.31 percent.

The trading volume increased to Rs 6,099.73 crore from Rs 5,722.02 crore on the last trading day. The realty major Unitech was the day's top traded scrip with highest turnover of 269.81 crore.

Bureau Report

First Published: Tuesday, September 08, 2009, 08:55

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