Sensex ends above 19,100; highest since April 2011

Tags: Stock Market
The BSE benchmark Sensex today regained 19,000 level after nearly two months by surging 329 points on heavy buying over optimism that government will push through economic reform initiatives and Goldman Sachs' upgrade of Indian stocks further boosting sentiments.

After rising to a day's high of 19,205.33, Sensex closed with a gain of 328.83 points, or 1.75 per cent, at 19,170.91. This is the third straight day the benchmark has gained.

Brokers said investors appeared confident that the UPA government will excel in a trial of strength over FDI in retail issue to be witnessed in Parliament next week. The Lok Sabha has decided to have a discussion on December 4 and 5 on the issue under a rule that entails voting.

In the 30-share Sensex, 26 stocks closed with gains led by Bajaj Auto, ICICI Bank, Tata Motors, Cipla and Sterlite. L&T, HDFC, HDFC Bank, Reliance Industries and ITC also helped cement the index's gains. Across the BSE, over 1680 stocks gained today, helping the market cap zoom to Rs 66.74 lakh crore, up Rs 80,000 crore in a single session.

"Markets rose sharply for the second successive day...We touched new calendar year highs during the day. Markets have started factoring in some further announcements on fiscal reforms with the deadlock on retail FDI issue being resolved and discussion expected to happen next week," said Dipen Shah, Head of PCG Research, Kotak Securities.

A smooth ending of the current month's settlement in the derivative segment and a higher global trend as optimism grew that US President Barack Obama will reach an agreement with Congress over a new budget, further influenced the sentiment.

The 50-share National Stock Exchange index Nifty closed 97.55 points, or 1.70 per cent, higher at 5,825.

S&P CNX Nifty Index may rise 14 per cent by 2013-end, Goldman Sachs Group Inc said in a report today, upgrading its recommendation on India to overweight from market-weight.

"For India, upside drivers include a recovery in growth, a decline in inflation, and the potential for continued policy reforms," Goldman Sachs said adding that with structural issues being addressed and a cyclical recovery on the horizon, the market may bounce strongly next year.

Markets @ 02.30 PM (Reuters)

The Sensex and the Nifty hit their highest in nearly 19 months on hopes the logjam in parliament may end after the government agreed to a vote on allowing foreign entry in multi-brand retail and helped by an upgrade of Indian equities by Goldman Sachs.

The Sensex rose to its highest since May 2, 2011 when it hit an intraday high of 19,253.87.

Goldman Sachs raised Indian stocks to 'overweight' from 'market-weight', citing growth recovery and inflation moderation ahead.

The Nifty also hit its highest level since April 28, 2011.

Markets @ 11.00 AM (Reuters)

The Sensex jumps around 200 points, crossing 19,000 for the first time since October 5, while the Nifty gains 1 percent.

Gains track Asian shares that hit three-week highs on Thursday as sentiment improved after a senior U.S. lawmaker said he was "optimistic" on reaching a budget deal before the end of the year to avoid a fiscal crisis.

Traders say Moody's stable outlook on India has eased potential ratings downgrade worries from S&P and Fitch in the near term.

On Thursday Goldman Sachs upgraded Indian stocks to 'overweight' from 'market-weight', citing growth recovery and inflation moderation ahead. The investment bank pegged December 2013 Nifty target at 6,600 points.

Leading the gains were mortgage lender HDFC , up 2.4 percent; ICICI Bank gains 1.4 percent while Tata Motors is up 3.17 percent.

Markets @ 09.00 AM (PTI)

Extending gains for the third straight session, the BSE benchmark index Sensex today rose by over 105 points in early trade on continued capital inflows by foreign funds on hopes of an end to the ongoing Parliament logjam over FDI in retail amid firm Asian cues.

The 30-share barometer, which has gained over 336 points in the previous two sessions, added 105.22 points, or 0.56 per cent, to 18,947.

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