Mumbai, Oct. 18: The week ended on a strong note for investors as encouraging news from China and receding fears over the tapering of bond purchases in the US saw the Sensex climbing to its highest level in almost three years.
The bellwether index today closed at 20882.89, up 467.38 points, with only 117 points away from the 21000-mark and just 323.78 points short of the all-time high of 21206.77 on January 10, 2008.
Market circles say if the current trend continues and if there is no negative news from the global or domestic markets, both these peaks could be crossed before Diwali.
The pundits on the Street said today’s rally was largely on account of global factors.
Latest data from China, which showed its GDP growing at 7.8 per cent during the July-September period, spurred the metal stocks on hopes of a robust demand in the world’s second-largest economy.
Tata Steel rose nearly 6 per cent to Rs 328.45, its best show in nearly seven months.
Shares also got a boost from speculation that the US Federal Reserve would continue with its Quantitative Easing programme at least till early next year.
Analysts said foreign investors were seen lapping up stocks, making net purchases of around Rs 1,753 crore.
While the metal counter was the top gainer, heavyweights such as ICICI Bank, HDFC Bank, ITC and Reliance Industries also drove up the Sensex.
Investors on the BSE were richer by Rs 1.07 lakh crore.
Rakesh Tarway, assistant VP-research at Motilal Oswal Securities Ltd, said domestic factors also played a role.
“Things on the domestic macro front have changed for the better with the rupee hitting a two-month high and addition in forex reserves gaining pace. Markets had a rally today in the wake of better-than-expected quarterly results from companies such as TCS, Infosys and Reliance Industries, which were announced during this week,” Tarway said.
The 50-share CNX Nifty on the National Stock Exchange rose 143.50 points, or 2.37 per cent, to end at 6189.35.