The Telegraph
Thursday , April 3 , 2014
CIMA Gallary

Stocks march forward

Mumbai, April 2: Stocks continued to break records today with the BSE benchmark Sensex topping the 22500-level to end at a new closing high on the back of strong FII inflows and favourable global cues.

According to market circles, the Election Commission’s green signal to the RBI to issue new bank licences also boosted sentiments, generating hectic buying in the stocks of the some of the non-banking finance companies.

The Sensex opened higher at 22550.58 and rose to an all-time high of 22592.10 during intra-day trade, with buying being witnessed across sectors, including capital goods, realty and healthcare. The 30-share benchmark index finally settled at a life-time closing high of 22551.49, a rise of 105.05 points, or 0.47 per cent, from its previous close. It had scaled new peaks in the previous five days as well.

The 50-share Nifty of the NSE gained 31.50 points, or 0.47 per cent, to end at an all-time high of 6752.55, after touching 6763.50 during the day.

Provisional data from the stock exchanges showed that the FIIs made a net purchase of Rs 595 crore.

According to analysts, stocks are likely to consolidate around the current levels. They, however, maintain that the sentiment continues to remain buoyant on the expectation that the NDA government led by Narendra Modi could come into power.

Among the banking stocks, the State Bank of India gained 2.06 per cent, while ICICI Bank rose more than 1.50 per cent. IDFC and LIC Housing Finance also witnessed buying activity on hopes that they could bag in-principle approvals from the RBI to set up a bank. Drug makers such as Cipla and Dr Reddy’s also contributed to the upsurge following speculation that the US regulator might ease an import ban on Indian drug firms.

The market breadth remained positive as 1,895 stocks ended in the green.