The Hindu : Business : Sensex jumps 215 points

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Wednesday, Jun 20, 2007
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Sensex jumps 215 points

MUMBAI: The Bombay Stock Exchange ended its two-day downslide with a thumping gain of over 200 points in its benchmark index, led by strong gains in blue-chips from banking, refinery and engineering sectors.

The 30-share barometer index, Sensex settled 14295.50, with a gain of 215.36 points over its previous close of 14,080.14.

The index recouped all its losses over the past two trading sessions, when it dropped about 124 points, while settling at its highest close in the past two weeks.

The Nifty index of National Stock Exchange also gained 67.20 points or 1.62 per cent at 4214.30 (4147.10).

Bank stocks gained on the bourses, led by the country’s largest bank SBI, and the biggest private sector lender ICICI Bank, whose follow-on offer received a robust response and got oversubscribed within hours after the bidding began on Tuesday.

Brokers said robust response to the equity issue boosted the sentiment towards bank stocks, which have been trading on a subdued note in the recent past on expectations of a further hike in interest rates.

Significant gains were seen in the refinery, capital goods and metal stocks as well.

Brokers said blue-chips like Reliance, ICICI Bank and SBI attracted good value buying as well as shortcovering by FIIs.

RIL advanced by 3.3 per cent to Rs 1,727.15 after global investment banking major Goldman Sachs raised its target price for the stock to over Rs 2,000 a share on expectations that gas production from new fields next year would boost earnings.

SBI was the biggest gainer on the Sensex with a jump of over four per cent. — PTI

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