Stock markets came alive after the President of India Pratibha Patil unveiled the Congress-led UPA government’s agenda in Parliament, which indicated that the focus will be on the disinvestment, pension, exports, housing, infrastructure and small and medium enterprises – among these are some of the worst-hit sectors of economy.
The day did not exactly start with a bang, the indices gradually worked themselves into a frenzy and then reached the day’s high, and more than that, they were able to retain some of the gains, but these were enough to enable Sensex to climb over the 15,000-point mark, while the Nifty closed up by 41.95 points.
Sensex was the index to watch as it jumped by 138 points, especially after the government showcased its plan to unleash reforms to put the economy on a high-growth path as well as battle back the recession.
The extent to which the index pulled off a U-turn can be gauged from the fact that at opening, Sensex had shed 1.8 per cent and at the end of the day, it could still boast of a 138-point gain to close at 15,008.68 points – a level that it had last seen in September 2008. Sensex closed very near the day’s high of 15,026.03 points.
On the National Stock Exchange, nifty closed at 4,572.65 points – the day’s high was 4,582.20 points.
Other boosters for the bourses was the fall in inflation as well as positive cues from the European indices.
The stocks that rose today were on expected lines, following the Presidential address, and included banking, capital goods, healthcare, realty, and power.
SmallCap and MidCap indices have remained on the top today too, indicating that these stocks have retained their value in the eyes of people looking to buy cheap, even though the attendant risk may be high – evoking a sense of the heyday of the bull run in the markets in 2007, which was running on pure sentiment , pushing Sensex past the 20,873-point mark at its highest point. However, with both these indices being on a winning streak for weeks, it may be a debatable point whether scrips on them are cheap or dear.
Today, the SmallCap and MidCap indices recorded a gain of 2.20 per cent and 2.26 per cent, respectively.
However, the sentiment could not push a whole lot of scrips into gains, with the final tally recording 2,130 gainers and 688 losers on the Bombay Stock Exchange.
The stock indices that were at the forefront of the acceleration were realty and capital goods which jumped by as much as 3.29 per cent and 3.23 per cent, respectively.
But the metals index could not effect a recovery and ended up shedding as much as 2.11 per cent.
Among the top traded shares, the attention was wholly on the various Reliance entities on both sides of the family holdings, but right on the peak was Tulsi Tanti’s Suzlon Energy, followed by Reliance Capital, Reliance Natural Resources, Satyam and RIL.
Indian Equity Driven by FIIs