The Sensex touched a 16-month high on Wednesday on the back of US Federal Reserve Chairman Ben S. Bernanke's assurance that the worst recession since 1930s had probably ended, signalling a faster than expected economic recovery.
The Sensex opened 44 points higher at 16,498 this morning, which is also its intra-day low. Sustained buying triggered by positive global cues helped the index to stage a smart rally.
The index remained firm throughout the day and touched a high of 16,700, up 246 points towards the end of the day and closed near day's high at 16,677, up 1.35%, or 222 points.
The NSE Nifty also closed at 16- month high at 4,958, up 66 points.
US markets rose to calender year high on Tuesday after strong manufacturing and retail sales boosted commodity prices and shares of material companies. The Asian markets remained positive barring the Shanghai Composite that declined 1.12%.On the other hand, the Hang Sang rose 2.57% to a fresh 2009 high, led by banks, on growing optimisn about a global economy recovery. The Nikkei gained 0.5% on Wednesday.
All the BSE sectoral indices ended in the green. Among the sectoral indices, metal index led rally with an increase of 4.2%, followed by auto, bankex and realty indices. Auto index advanced 2.2%, bankex and realty added 2% and 1.8%, respectively. BSE small-cap and mid-cap rose 1.4% and 1.1%, respectively.
The market breadth was positive with 1,574 advances and 1,243 declines among 2,882 stocks.
. . .INDEX MOVERS
Tata Steel gained the most among the frontliners and touched its 52-week high at 534 during the day, on prospects of better growth by its UK arm, Corus. The scrip climbed over 8% to Rs 531 at its close.
Tata Motors jumped over 6% to Rs 604. Hero Honda touched its life-time high on Wednesday. The scrip closed up 3.5%, at Rs 1,674.
SBI advanced to an 18-month high after Reserve Bank of India's indication to keep borrowing cost at record low in order to increase investment and spending fuelling economic growth. SBI soared 4% to Rs 2,089.
Sterlite soared after metal prices soar as US retail sales in August increased the most in three years, led by a rise in auto sales. Hindalco surged nearly 5% to Rs 131.
ACC, Grasim and ICICI Bank rallied over 3% each to Rs 799, Rs 2,692 and Rs 867, respectively.
Reliance Communications gained 2.5% at Rs 308. Infosys added over 2% at Rs 2,317.
Mahindra & Mahindra, Tata Power, DLF, Maruti Suzuki, Bharti Airtel were up 1-2% each.
. . .AND THE SHAKERS
Hindustan Unilever, Wipro and HDFC were marginal losers.
