Friday, 23 November 2012

Sensex extends gains on reform hopes; ends up 57 points

Sensex extends gains on reform hopes; ends up 57 points
Clean Media Correspondent

MUMBAI, Nov 23 (CMC) The benchmark Sensex rose by 57 points on persistent buying in capital goods, IT and banking stocks as rejection of no-trust motion against the government bolstered hopes of more reform measures on Thursday. 

Higher global advices coupled with sustained capital inflows also boosted the market sentiment. 

The BSE barometer resumed higher at 18,510.94 and shot up further to 18,567.68 before ending at 18,517.34, showing a net gain of 56.96 points, or 0.31 per cent. Yesterday, it was up by 131.06 points or 0.72 per cent.

The NSE 50-share Nifty also moved up further by 12.95 points or 0.23 per cent to finish at 5,627.75. 

Smart rise in heavyweights like ITC, InfosysBSE 1.55 %, L&T, HDFC Bank, SBIBSE 1.89 % and Mahindra & Mahindra mainly supported the Sensex surge while fall in Tata MotorsBSE -2.49 %, ICICI BankBSE -1.03 % and RILBSE -0.52 % restricted the rise to some extent, a broker said. 

An attempt by former UPA ally Trinamool Congress to bring a no-confidence motion against the government over FDI in retail failed today in the Lok Sabha for want of requisite numbers, which supported the uptrend, the broker said. 

"In the coming days, market sentiment would depend on how parliamentary winter session proceeds," Amar Ambani, Head of Research, IIFL said. 

Capital goods, IT, Teck, FMCG, PSU and banking stocks firmed up on good buying enquiries. 

State Bank of IndiaBSE 1.89 % was the biggest gainer among 30-Sensex scrips with gains of 1.89 per cent after the government said it will recapitalise PSU banks to meet Basel III norms. Private bank HDFC BankBSE 1.03 % rose over 1 per cent while FMCG major ITCBSE 1.17 % gained 1.17 per cent. 

Hindustan CopperBSE 11.33 % surged by 11.33 per cent to Rs 266.30 after the government announced plans to divest 4 per cent equity in the company. 

Asian stocks ended higher as a preliminary survey showed China's manufacturing may grow this month. Key benchmark indices in Hong Kong, Indonesia, Japan, Singapore, Taiwan and South Korea rose in the range of 0.82 per cent to 1.56 per cent, while China's Shanghai Composite fell 0.72 per cent.

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