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Markets make merry

Mumbai, Dec. 24: A near 700 -point surge in the sensex today brought a windfall of sorts for investors, who got richer by nearly Rs 2 lakh crore on the eve of Christmas.

The market capitalisation of all listed companies on the BSE soared to Rs 67.61 lakh crore from Rs 65.64 lakh crore on December 20, adding Rs 1.97 lakh crore. The sensex surged 691.55 points on strong global cues and the receding possibility of mid-term parliamentary polls following the outcome of Gujarat elections.

The index, enthused by Narendra Modi’s victory, ended on a strong note at 19854.12, led by Wipro and ICICI Bank. All frontline stocks gained, with IT stocks leading the rally at 6.04 per cent. The technology, oil and gas, and bank indices rallied 5 per cent, 3.53 per cent and 3.4 per cent, respectively.

Asian markets were in festive spirits and the Hang Seng gained 502 points. The S&P and the Nikkei ended in the green with 1.7 and 1.5 per cent gains, respectively. The BSE-100 was up 347 points, while the BSE-500 jumped 244.54 points.

“The election news has cheered up investors. Anything up to 20100 points will be a sustainable level for the sensex at the moment. The IT stocks gained on account of stabilisation in the rupee, and the imminent financial results season,” Harendra Kumar of ICICI said.

“Investors are also expecting a cut in interest rates by the central bank in its forthcoming policy review. This sentiment will continue to support banking stocks. Automobile is another sector which will soon move into gains,” Kumar added.

Shares of Wipro rose 8.86 per cent on speculations that the company was going to bid for Capgemini in January. Infosys jumped 6.63 per cent, while GAIL (India) Limited rose 9 per cent.

“The US market closed on a good note on Friday, and that has helped the Indian market open 200 points up today. IT stocks will continue to do well for some time, but the prospect of banking shares is doubtful at the moment,” V. K. Sharma of Anagram said.

“Eighty per cent of today’s gains can be attributed to strong international markets. Unlike in the recent past, we haven’t seen much selling at higher levels today, and the credit goes to the IT stocks,” said Ambrish Baliga of Karvy Stock Broking Ltd.

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