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Sensex touches 20000-mark

MUMBAI: The Sensex touched the psychological barrier of 20000-mark on Monday and closed just below that mark at 19977.67, a gain of 734.50 points or up by 3.82 per cent. It was the third biggest single day gain for the BSE 30-share index. The rally of 1-3 per cent in other Asian Markets also supported the Indian bourses to surge and broader markets also participated in the rally. The 50-share Nifty moved up by 203.60 points or 3.57 per cent at 5905.90. The BSE madcap index closed at 8082.54, up by two per cent and the BSE small cap is up by 1.6 per cent at 9705.20.

As the Reserve Bank of India (RBI) to meet the bankers on Tuesday for its mid-term review of annual policy, the markets are expecting a cut in rates. Further, for foreign institutional investors (FIIs), the enthusiasm comes from the expectation that U.S. Federal Reserve is likely to cut rates on Wednesday. With the regulations on Participatory Notes (PNs) have being tightened, the markets are expecting that the RBI would not be harsh with rates.

The Sensex crossed the 19000 mark once again on last Friday and the Sensex ended last week at 19243.17, with a gain of 9.6 per cent compared to the previous week’s close. However, the journey from the 19000-mark to 20000-mark was too surprising.

After the issue of proposed ban on PNs were clarified, the Sensex surged by 879 points on last Tuesday to end at 18492.84.

The broad sectors of the markets also made strong weekly gains.

Capital goods index surged by 20.2 per cent; banking sector index moved up by 16.3 per cent over the previous weeks close. FIIs were net sellers in equities to the tune of Rs. 1,575 crore as on October 25.

However mutual funds bought to the extent of Rs 10.2 billion till that date.

On Monday, the BSE oil and gas index was up by 5 per cent and the BSE metal index was up by three per cent.

The BSE capital goods index gained 7 per cent. The BSE Bankex was up by four per cent. The BSE FMCG index closed with gain of two per cent.

The BSE auto Index gained by one per cent and the BSE IT index gained 0.8 per cent.

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