Wednesday, June 29, 2011

Sensex jumps 201 points to two-month high

MUMBAI: In a five-day long rising streak, the BSE benchmark index Sensex climbed to a two-month high adding over 201 points on buying by funds on expectations of better economic growth, shrugging off inflationary concerns.

The 30-share index, which had gained nearly 943 points in last four sessions, advanced further by 201.41 to 18,693.86, a level last seen on May 2.

Investors covering their pending short positions ahead of the ending of June month contract expiry in the derivatives segment tomorrow, further also fuelled the uptrend, marketmen said.

A firming trend in global markets on easing concerns of European sovereign debt crisis also boosted the sentiments.

Trading sentiment turned bullish as Finance Minister Pranab Mukherjee stood by his economic growth target even after the longest string of monetary tightening measures in a decade, brokers said.

Mukherjee said the economy will grow by 8.5% in 2011-12 and the recent hike in prices of petroleum products will not have much impact on the fiscal deficit.

In similar fashion, the broad-based National Stock Exchange index Nifty traded above 5,600 mark level by adding 55.15 points to settle at 5,600.41.

The rally was mostly contributed by FMCG, metal, banking, IT and realty stocks. The FMCG sector index gained the most by 2.58% to 3,972.89, followed by the metal index that rose by 1.52% to 14,987.98.

Market heavyweights Reliance Industries and Infosys Technologies closed with handsome gains. RIL rose by Rs 14.75 to Rs 885.30 and Infosys by Rs 17.90 to Rs 2,881.75.

toi

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