Sensex rises 329 points on upgrade of Indian equities
An upgrade of Indian stocks by Goldman Sachs and hopes that the government would tide over the opposition to foreign direct investment (FDI) in multi-brand retail in arliament saw a benchmark index for equities markets soaring 329 points Thursday.
Interest-sensitive bank, automobile, metal, capital goods and oil and gas stocks gained the most.
The 30-scrip sensitive index (Sensex) of the Bombay Stock Exchange (BSE), which opened at 18,873.63 points, ended the day with a gain of 328.83 points, or 1.75 per cent, at 19,170.91. The index had closed at 18,842.08 points in its previous session.
The benchmark index touched a high of 19,205.33 points and low of 18,873.63 points intra-day.
In the 30-share Sensex, 26 stocks gained. Among these were Bajaj Auto, ICICI Bank, Tata Motors, HDFC Bank and Sterlite.
The wider 50-scrip S and P CNX Nifty of the National Stock Exchange also rose 97.55 points, or 1.70 per cent, to 5,825.
The global investment banking and securities firm Goldman Sachs in a report said India's economic growth, backed by favourable external sector demand outlook and a pick-up in domestic reforms, is likely to accelerate to 6.5 per cent in 2013.
It raised Indian stocks "overweight" from "market-weight", citing growth recovery and moderation in inflation in the days to come and pegged December 2013 Nifty target at 6,600 points.
The current month's settlement in the derivative segment also helped the market gaining strength.
Earlier, a rebound in other Asian markets from the previous session's one-week closing low on indications that US lawmakers would reach a fiscal deal, boosted investors' appetite.
At closing bell here, European shares were also trading with gains.