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Sensex Up 212 Pts As Samvat 2070 Ends With A Bang

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Samvat year 2070 ended with a bang as Sensex on Wednesday (22 September) soared 212 points to finish at one-month high and Nifty jumped 68 points to close just shy of 8,000 mark on optimism festive sales will boost earnings and hopes that Modi government will unleash more economic reforms.

The Hindu Samvat year 2070 saw Sensex flaring up by 5,547.87 points or 26.12 per cent, its biggest gain in last five Samvat years.

In Samvat year 2065, it had gained 8,813.26 points or 103.57 per cent. Investors in BSE listed stocks gained nearly Rs 25 lakh crore in Samvat year 2070.

In a firm but range bound trade Wednesday, buying was seen across the board as all 12 BSE sectoral indices closed with gains between 0.06 per cent and 2.97 per cent.

Auto, capital goods and pharma counters took the lead in the surge. Second-line stocks also attracted good buying, indicating renewed support from retail investors.

"The optimism on the street was mainly due to sustained recovery in the global markets and positive momentum from the reform measures announced by the government recently," said Jayant Manglik, President-retail distribution, Religare Securities.

The benchmark S&P BSE Sensex resumed strong with a wide upside gap of over 200 points in line with firm Asian cues. It later moved in a narrow range of over 100 points before ending at one-month high of 26,787.23, logging a rise of 211.58 points or 0.80 per cent.

Previously, it had closed at 27,206.74 on September 22, 2014. In straight four sessions, Sensex has gained 787.89 points or 3.03 per cent.

The broad-based 50-issue CNX Nifty of the NSE also rallied by 68.15 points, or 0.86 per cent, to end at almost one-month high of 7,995.90. It touched an intra-day high of 8,005.00.

"We understand that the consumer buying has been good in the run-up to the festive season leading to buying of select stocks. Capital goods stocks also performed well as they responded to the government actions related to coal block auctions," said Sanjeev Zarbade, Vice President- Private Client Group Research, Kotak Securities.

Meanwhile, the provisional data released by the stock exchanges showed Foreign Portfolio Investors (FPIs) bought shares worth a net Rs 32.40 crore on Tuesday.

Asian stocks, except China, closed firm, following overnight bullish US market amid upbeat quarterly results from tech giant Apple and talk of stimulus in Europe. Key indices from Hong Kong, Japan, South Korea and Taiwan finished higher between 1.09 per cent and 2.64 per cent.

European stocks were trading mixed in their early trade, as some earnings reports missed estimates, outweighing speculation the European Central Bank will boost stimulus. Key indices in France and UK moved down by 0.13 per cent to 0.22 per cent while Germany's DAX was quoting slightly higher.

Jignesh Chaudhary, Head of Research, Veracity Broking Services said," Local Indian equities continued to trade strong for the day with the help of bluechip companies taking cues from strong global equities."

As many as 21 scrips out of the 30-share Sensex ended higher while only nine finished lower. Major gainers were Hero Motoco (4.03 per cent), Tata Motors (3.54 per cent), Maruti (3.44 per cent), Cipla (3.43 per cent), Bajaj Auto (3.43 per cent), Larsen (2.59 per cent) and M&M (2.58 per cent).

Dr Reddy's Lab (2.13 per cent), BHEL (1.89 per cent), Reliance Industries (1.81 per cent), Wipro (1.47 per cent), Sun Pharma (1.25 per cent) and HUL (1.02 per cent) also gained.

Sensex laggards today include ONGC that dropped by 1.97 per cent, ITC 0.65 per cent, NTPC 0.58 per cent and Coal India 0.58 per cent.

Among the S&P BSE sectoral indices, Auto rose by 2.97 per cent, followed by Capital Goods 2.08 per cent, Healthcare 1.67 per cent and Consumer Durables 1.16 per cent.

Market breadth remained positive as 1,784 stocks ended with gains while 1,031 finished lower. The total turnover dropped to Rs 2,617.70 crore from Rs 3,112.63 crore yesterday.

The Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) will remain closed for regular trading, but will remain open for special trading from 18.15 hrs to 19.30 hrs tomorrow, October 23, 2014, for Muhurat Trading.

Both the exchanges will remain closed on October 24, 2014 for observing "Diwali Balipratipada".