Sensex, Nifty up more than 2% on hopes of reforms
May 24 2014 , Mumbai
Markets ended in the green for the third consecutive week as both the indices gained by more than 10 per cent in three weeks on persisting buying mainly in realty, power, PSUs, metal, consumer durables, capital goods and refinery sectors.
A clear mandate for the BJP has rekindled hopes for structural reforms and better investment climate and the country's growth is likely to accelerate to 6.5 per cent in FY16, a Goldman Sachs report said.
The BSE Sensex resumed higher 24,340.32 and hovered in a range of 24,745.86 and 24,107.99 before ending the week at 24,693.35, showing a gain of 571.61 points, or 2.37 per cent.
The NSE 50-share Nifty also rose by 164.10 points or 2.28 per cent to finish the week at 7,367.10.
Country's largest bank SBI gained by 14.10 pct despite decline in the Q4 net profit but asset quality showed signs of improvement. "SBI reported healthy performance on asset quality front while operating performance came ahead of our estimates," said Angel Broking.
Investors heavily bought power stocks, including NTPC and Tata Power, on reports that the Modi-led NDA government is likely to harness solar power sector and give a fillip to development of offshore wind energy.