The Telegraph
Saturday , June 7 , 2014
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Stock momentum intact

Mumbai, June 6: Investor wealth on the bourses climbed to a stratospheric $1.5 trillion today as the BSE Sensex continued to smash records, streaking to a new all-time intra-day high of 25419.14 and settling for the day at another closing high of 25396.46, up 376.95 points, or 1.51 per cent.

The market capitalisation of all the listed companies stood at Rs 89,31,898 crore. At the closing rate of Rs 59.17 to the dollar, the market capitalisation stands at $1.5 trillion.

Both the Sensex and the Nifty today galloped to new peaks as the onset of the southwest monsoon and hopes of a hike in natural gas prices attracted fresh funds from overseas investors betting big on economic revival under the new government.

The rupee appreciated 16 paise, logging its biggest daily rise in a fortnight, to end at 59.17 against the dollar.

The Sensex surpassed its previous all-time high of 25375.63 registered on May 16 and its previous record close of 25019.51 hit on June 5. On a weekly basis, it has bounced back by 1179.12 points, or 4.89 per cent.

The wide-based 50-issue CNX Nifty of the NSE jumped 109.30 points, or 1.46 per cent, to end above the 7500-mark for the first time at 7583.40. It also crossed its all-time intra-day high of 7563.50 hit on May 16.

On the global front, the European Central Bank’s decision to cut its benchmark interest rates to unprecedented lows to pump money into the sluggish eurozone economy also boosted domestic market sentiments.

“Markets rose sharply for the week, reaching new all-time highs. Announcement of stimulus by the ECB and continued optimism on economic reforms in India led to big gains. Expectations of resolution to the gas pricing issue helped stocks such as Reliance Industries and ONGC register gains. We see the monsoon progress and the budget to be the two important triggers,” said Dipen Shah, head of private client group research, Kotak Securities.

Foreign institutional investors, the key drivers of the bull run, picked up shares worth Rs 1,368.97 crore yesterday, according to provisional data with the stock exchanges.

Nine sectoral indices ended in the green, with realty, oil & gas and banking shares leading the surge.

There was broad-based buying witnessed in the markets. Market breadth remained positive as 2,144 stocks closed with gains, while 959 ended lower.

The BSE small and midcap indices jumped about 1.6 per cent each.

“Sustained buying activities by funds and retail investors have kept markets near life-time high levels,” said Jayant Manglik, president (retail distribution), Religare Securities.

Investors heavily bought oil and gas shares after reports said the government was likely to hike gas rates from July 1 after a new price formulation is approved by the cabinet.