Sensex surges over 495 points

Saturday 18 July, 2009.

Sens*x surges over 495 points

The benchmark Sens*x surged over 495 points on the BSE on Friday on heavy buying by funds, with the benchmark witnessing the biggest weekly gain since May on reports that the government is planning financial sector reforms and greater foreign investment in insurance.

The Sens*x, which gained over 853 points in two rallies this week, advanced further by 494.67 points at 14,744.92, after hitting the day's high of 14,800.70.

The index has gained 9.18 per cent this week to wipe off the 9.5 per cent loss suffered in the week before, after the government announced the big budget deficit.

In a similar fashion, the 50-share National Stock Exchange index Nifty surged to 4,390.40 before ending with a gain of 143.55 points at 4,374.95.

A firming trend following upbeat earnings reports from key US firms fuelled a Wall Street rally on Thursday and lifted sentiment in Asia.

As buying was widespread, all the 30 Sens*x stocks except three led by ICICI Bank recorded small to handsome gains.

Asian shares were higher with Japan's Nikkei up 0.5 per cent. US stocks rallied for a fourth day on Thursday after JP Morgan's strong results fed growing optimism about the quarterly earnings season and technology shares rose in anticipation of more good news.

The bull run got bolstered with the Reserve Bank of India saying the bank's effort is to keep interest rates benign and stable.

The world markets also surged for the fourth straight day on growing optimism about the earnings season.

Asian indices ended in the green and European markets were trading higher on Friday afternoon.

The auto sector index gained the most, 5.16 per cent, to 5,069.86, followed by the banking index, 4.76 per cent, to 8,132.16 after biggest private lender ICICI Bank surged 6.32 to Rs 742.35 on expectations of more sops for the industry.

The IT sector index rose 4.11 per cent to 3,505.28, tech 4.09 per cent to 2,711.71, realty 3.55 per cent to 3,347.10, PSU 3.31 per cent to 8,125.29, FMCG 3.02 per cent to 2,499.86, metals 3.01 per cent to 11,133.20, and power 2.82 per cent.