Sensex zooms 305 points up; bank, consumer durables rally
A benchmark index for Indian equities markets Tuesday surged 305 points on positive global cues and after ratings agency Moody's said India's outlook is stable. Banks, consumer durables, metal, capital goods and fast moving consumer goods (FMCG) stocks gained the most.
The 30-scrip sensitive index (Sensex) of the Bombay Stock Exchange (BSE), which opened at 18,616.55 points, was ruling at 18,842.08 points, up 305.07 points or 1.65 percent from its previous close at 18,537.01 points.
The benchmark index touched a high of 18,862.70 points and low of 18,616.55 points intra-day. The BSE midcap index was up 84.37 points, while the smallcap index was higher by 53.88 points.
The wider 50-scrip S and P CNX Nifty of the National Stock Exchange was up 91.55 points or 1.62 percent at 5,727.45 points.
Moody's said India rating outlook is stable because of the country's strong economic growth along with high savings and investment rates.
"India's Baa3 rating and stable outlook are supported by credit strengths which include a large, diverse economy, strong GDP growth and savings, and investment rates that exceed emerging market averages," the rating agency said in its 'Credit Analysis on India' report.
Market sentiment also improved on indications that the UPA government may tide over the political storm over FDI in retail sector that has paralysed parliament the past four days.
Ealier in the day, the impact of other Asian markets which gained after a deal on new debt targets for Greece and a political agreement on disbursing the next installment of aid was reflected in shares.
The bank index was up 242.09 points, while the consumer durables index edged higher by 240.51 points, followed by metals index, up 134.99 points, FMCG index, up 124.30 points, capital goods index, up 107.70 points and auto index, up 101.41 points.
Among the gainers were Bharti Airtel, up 5.22 percent at Rs.326.55; Sterlite Inds, up 3.56 percent at Rs.101.95; HDFC, up 2.79 percent at Rs.797.40; HDFC Bank, up 2.69 percent at Rs.680.20; and Hindalco Inds, up 2.55 percent at Rs.112.40.
Only two of the 30 Sensex scrips were in red.
The major Sensex losers were NTPC, 0.38 percent lower at Rs.158.60 and ONGC, down 0.08 percent at Rs.249.75.
Among other Asian markets, Japan's Nikkei rose 0.37 percent, but Hong Kong's Hang Seng declined 0.08 percent. China's Shanghai Composite Index was lower by 1.30 percent.
All major European markets were trading flat. Britain's FTSE 100 was up 0.29 percent, while the German DAX was trading higher by 0.39 percent. The French CAC 40 index was also up 0.14 percent.
The Indian markets will remain closed Wednesday for Guru Nanak Jayanti.