The Hindu : Business : Sensex surges 273 points to close above 17000

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Sensex surges 273 points to close above 17000

Anticipation of strong earnings by corporates for the second quarter triggers buying across banking and auto counters

MUMBAI: The benchmark Sensex surged by over 270 points on Thursday to close above the psychologically crucial 17000-level for the first time in more than 16 months.

Marketmen said anticipation of strong earnings by Indian corporates for the second quarter of the fiscal sparked hectic buying across banking, auto, consumer goods and realty counters.

Netting a gain of 273.93 points over its previous close, the 30-share index on the Bombay Stock Exchange ended the day at a fresh 16-month high of 17126.84, a level last achieved on May 21, 2008.

Meanwhile, after plunging to its lows since Lehman collapse, Dow Jones Industrial Average is hovering around 10000-level, boosting confidence in investors worldwide.

Brokers said the market was also driven by strong optimism among foreign funds, largely prompted by higher advance tax payments by companies.

Positive cues from global bourses also bolstered sentiment. Besides a promising Dow Jones, Asian indices ended up by about 0.30 per cent to one per cent except Hang Seng which eased by 0.28 per cent.

The European markets traded in the green in their early trade.

The markets have witnessed an uptrend since late March.

According to brokers the recovery from 8000-level to the present high level was rapid. In September, the bellwether index had crossed two milestones on better economic indicators such as core sector growth, late recovery in monsoon and signs of global economic recovery. The broader 50-share Nifty of the National Stock Exchange rallied further by 77.10 points to 5083.95 from its last close.

Analysts said the market became bullish on the back of robust growth in excise duty collection as well as a 7.1 per cent growth in the index of six core industries, an indication of strong economic fundamentals.

— PHOTO: VIVEK BENDRE

UPBEAT mood: Employees busy at a stock broker’s office in Mumbai. The BSE 30-share sensitive index moved decisively to cross the 17000-level, rising by 273.93 points to close the day at 17126.84.

The trading volume was high despite half-yearly closing of accounts in commercial banks and a public holiday on October 2 on account of “Gandhi Jayanti”, leading to another long weekend. The trading volume shot up to Rs. 6,668.92 crore.

OIL lists at premium

Oil India (OIL), which listed on Thursday, was the top traded share with the highest turnover of Rs. 990.84 crore. It closed at Rs. 1140.55 on the Bombay Stock Exchange against the issue price of Rs. 1,050.

From the Sensex pack, SBI firmed up by 5.01 per cent to Rs. 2,195.70, ICICI Bank by 4.63 per cent to Rs. 904.80 and Maruti Suzuki by 3.70 per cent to Rs. 1,698.90.

However, ONGC eased by 1.25 per cent to Rs. 1,171.30 and ITC by 1.07 per cent to Rs. 231.90. — PTI

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