Coal sector reforms fuelled a rally in power, metal and banking stocks lifting Sensex today by 146 points to end at over one-week high and Nifty by 48 points to regain the 7,900-mark. Persistent buying coupled with renewed foreign capital inflows amid higher opening in European markets also boosted the market sentiment, traders said. Shares of Realty, Power, Metal, Capital Goods, Banking and Consumer Durables sectors firmed up sharply.
In a major move towards energy sector reforms, the Cabinet yesterday recommended promulgation of an Ordinance to facilitate e-auction of coal blocks for private companies for captive use and allot mines directly to state and central PSUs. The BSE Sensex resumed higher at 26,552.45 and firmed up further to a high of 26,615.41 before concluding the day at 26,575.65 -- a gain of 145.80 points or 0.55%. It has gained by 576.31 points or 2.22% in three days and closed at its highest level since 26,637.28 on October 9.
The CNX 50-share Nifty also rose by 48.35 points or 0.61% to 7,927.75. "Sentiments were up-beat on report that FIIs were net buyers on Monday. Besides, the announcement by the government to cap the subsidy on domestic gas cylinders and to take up ordinance route to resolve issues arising out of the cancellation of coal blocks further aided positivity," said Jayant Manglik, President-retail distribution, Religare Securities.
In a sign of renewed capital inflows after a spate of selling recently, provisional data released by stock exchanges showed that Foreign Portfolio Investors (FPIs) bought shares worth a net Rs 1,040.08 crore on Monday. Asian stocks ended mixed as China's economy in the third quarter grew at its slowest pace in five years. Benchmark indices in Hong Kong and Singapore moved up by 0.08% to 0.68% while China, Japan, South korea and Taiwan dropped by 0.10% to 2.03%.
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