BSE Sensex soars 382 pts on US Fed comments,strong Indian rupee

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The BSE Sensex started the day on a high note at 19,584.38 and kept improving further to close the day higher by 381.94 points,or 1.98 per cent,at 19,676.06. This is the Sensex’s highest closing since 19,760.30 on May 31 and the biggest single-day gain since June 28.

This led to investors becoming richer by Rs 1 lakh crore today as total market capitalisation of BSE rose to Rs 64,90,805.42 crore.

The index had closed higher by 145.36 points yesterday.

Similarly,the wide-based National Stock Exchange index Nifty gained 118.40 points,or 2.04 per cent,to close at 5,935.10. Also,SX40 index,the flagship index of MCX-SX,closed 211.03 points,or 1.83 per cent higher at 11,744.81.

Brokers said the trading sentiment bolstered after Bernanke last night signalled that the monetary stimulus would continue for some time boosting the prospect of the flow of funds to emerging markets.

The Indian rupee strengthening for the third day against the US dollar to 59.42 intra-day,amid an overall firming global trend also pepped up the sentiment.

Cautious investors indulged in picking fundamentally strong stocks ahead of earnings season beginning tomorrow with Infosys coming out with its first quarter results.

Out of the 30 BSE Sensex index components,27 stocks closed with gains led by Sterlite Industries rising 4.78 per cent to Rs 87.70. Other major gainers were HDFC Bank (3.32 per cent),ITC (2.17 per cent) and HDFC (2.86 per cent).

Sectorwise,the metal sector index gained the most by rising 3 per cent to 7,734.18,followed by bank index by 2.48 per cent to 13,302.84.

BSE Sensex gains nearly 2 pct,earnings,macro data key

(Reuters) BSE Sensex rose about 2 percent on Thursday to its highest in about 1-1/2 months as blue chips such as HDFC Bank staged a broad recovery from recent falls on hopes that U.S. monetary stimulus would not end as early as feared.

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Federal Reserve Chairman Ben Bernanke said on Wednesday the U.S. central bank would continue to pursue an accommodative monetary policy as inflation remained low and the unemployment rate might be understating the weakness of the labour market.

That helped ease concerns about foreign selling that have hit Indian markets. Overseas investors have sold a net 100.8 billion rupees ($1.68 billion) of shares since the start of June.

Still,some caution also prevailed ahead of Infosys Ltd earnings due on Friday,which will kick off the blue chip reporting season,and data on industrial production and consumer prices also due on Friday.

“While global cues put Indian markets in action today,the domestic events will give the climax tomorrow,” said Milan Bavishi,head of research at Inventure Growth and Securities.

India’s benchmark BSE index gained 1.98 percent or 381.94 points,to end at 19,676.06,marking its highest close since May 31.

The NSE stock index rose 2.04 percent or 118.40 points to end at 5,935.10,marking its highest close since June 3.

Both indexes posted their biggest daily percentage gains since June 28.

Blue chips led the market,with ITC Ltd gaining 2.3 percent while HDFC Bank Ltd ending up 3.6 percent.

Infosys gained 1.1 percent a day ahead of its April-June earnings.

Shares in Mangalore Chemicals & Fertilizers Ltd (MCF) surged 10 percent to a record high,hitting their maximum daily limit for a second consecutive session,on expectations the company is becoming a target for a takeover.

Shares in Apollo Tyres Ltd gained 1.5 percent,hitting their highest intraday level since June 18,after Morgan Stanley Asia (Singapore) Pte on Wednesday bought a 0.5 percent stake in the company via a bulk deal,NSE data shows.

However among stocks that fell,State Trading Corp of India Ltd lost 5 percent after a government minister said India’s cabinet approved planned stake sale in the company. Maruti Suzuki India Ltd fell 2.5 percent after Macquarie downgraded the stock to “neutral” from “outperform” and cut its target price to 1,525 rupees from 1,850,citing continued weakness in passenger vehicle demand and discounts on models.