The Telegraph
Tuesday , June 10 , 2014
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Delhi cues fuel rally

Mumbai, June 9: Key stock market indices today continued their record-breaking run to close at new highs as investors cheered President Pranab Mukherjee’s speech in Parliament that reaffirmed the government’s business friendly agenda.

The 30-share BSE Sensex finished at 25580.21, while the Nifty gained 71.20 points to settle at 7654.60.

According to market pundits, though many stocks look over-bought at this juncture, the rally is likely to continue on the expectation that the Narendra Modi-led government will implement major economic reforms across various sectors.

Rail infrastructure stocks saw brisk action today after Mukherjee said the Union government planned to launch a diamond quadrilateral project of high-speed trains.

The Kalindee Rail Nirman stock gained nearly 5 per cent, while Texmaco Rail & Engineering rose around 10 per cent. Titagarh Wagons surged 5 per cent to hit the upper circuit.

The real estate counters also witnessed buying following the address, which talked about proper housing for all by 2022.

The announcement stoked interest in cement shares, too. The Unitech scrip spurted nearly 17 per cent, while the shares of Sobha Developers gained around 10 per cent.

The strong sentiment saw investor wealth swell over Rs 1 lakh crore to Rs 90.26 lakh crore. The Sensex resumed strong at 25543.60 and rose further to hit an intra-day historic high of 25644.77 before ending at 25580.21. The finish marked a rise of 183.75 points. The index has risen 774.38 points, or 3.12 per cent, in three straight sessions.

On the BSE, 10 out of 12 sectoral indices finished higher. Realty, capital goods, power, metal, consumer durables and auto segments led the pack.

However, a few experts maintain that prices might see a correction soon. They point out that the next key trigger will be the budget and till such a time, indices are likely to remain range-bound with profit-booking emerging at higher levels.

Twenty out of 30 Sensex-based counters closed with gains, while others settled with losses. Bajaj Auto was the top gainer, with a rise of 5.48 per cent, followed by Coal India at 5.22 per cent.

Impressive US jobs report and an upward revision of Japanese economic growth and last week’s ECB stimulus to boost the Eurozone economy, also aided the domestic sentiment.