Sensex surges 250 pts; Tata Motors, Hindalco, HUL up
MUMBAI: The Indian equities were witnessing broad based buying with benchmarks hitting 16-month high on the back of dollar inflow following QE3 and as the UPA government began reforms process to stabilise the Indian economy.
"For those looking for the macro to improve before buying equities, it may just get too late given the market's way of looking forward and its ability to fix the macro. Arguably, markets are far from efficient and, just as they had slipped into gloom and doom less than 9 months ago, they are capable of rising into euphoria.
In the meantime, we remain buyers of equities with a cyclical bias. This could all go wrong with one badly received political move, complacency in Europe, or a supply shock in oil," said Ridham Desai of Morgan Stanley.
At 12:50 p.m.; the 30-share index was at 18,822.44, up 242.94 points or 1.31 per cent. The index touched a high of 18,869.94 and a low of 18,698.51 in trade today.
The Nifty was at 5,714.30, up 64.80 points or 1.15 per cent. The broader index touched a high of 5,735.15 and a low of 5,683.45 in trade today.
The BSE Midcap Index was up 1.24 per cent and the BSE Smallcap Index moved 1.09 per cent higher.
Among the sectoral indices, the BSE Auto Index was up 2.14 per cent, the BSE Metal Index moved 1.98 per cent higher, the BSE Power Index gained 1.75 per cent and the BSE FMCG Index advanced 1.53 per cent.
Tata Motors (4.14%), Hindalco Industries (3.30%), Tata Steel (2.56%), Tata Power (2.44%) and HUL (2.09%) were the major Sensex gainers.
HDFC Bank (0.11%) and Infosys Technologies (0.02%) were the only index losers.
The market breadth was positive on the BSE with 1,657 gainers against 1029 losers.
The foreign institutional investors bought shares worth Rs 399.74 crore on Thursday as per the provisional data from the National Stock Exchange.
Meanwhile, the rupee rose to a near five-month high on the back of sustained dollar inflows after the government pushed for reforms. The partially convertible rupee was at 50.64 per dollar, up 37 paise against its previous close.
The European markets have opened in the green mirroring gains in other global equities. The FTSE 100 was up 0.32 per cent, the CAC 40 gained 0.41 per cent and the DAX moved 0.40 per cent higher.
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