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.