The BSE Sensex surged more than 300 points at 1 pm on Friday on aggressive buying by funds as well as retail investors.
Updated at 6:00 pm
MUMBAI: The stock markets on Friday set new records with the benchmark BSE Sensex surging 426 points to regain the 14,000 mark on back of sharp growth in industrial production and impressive gains in banking shares.
The Sensex rose to an intra-trade record of 14,070.88 and ended at a new closing peak of 14,056.53, a net gain of 425.82 points or 3.12 per cent over Thursday's close.
This is the biggest single-day gain by the key index in about six months. Bank stocks were in great demand following the government decision to bring in an ordinance to amend Banking Regulation Act 1949, which will give Reserve Bank of India flexibility to set the statutory liquidity ratio (SLR) for banks.
Brokers said gains in banking shares were driven by expectations that this amendment would help improve liquidity in the system as the central bank can now reduce the SLR that would free up bank funds for non-government borrowers.
Reflecting the rally in banking sector, the BSE Sensex zoomed by a record 469.40 points or 6.79 per cent to end at a new record high of 7,383.25.
The broader S&P CNX Nifty of the National Stock Exchange (NSE) also peaked to 4,052.45, a sharp rise of 110.20 points or 2.80 per cent over previous close of 3,942.25.
Market sentiment was also boosted by the government's decision to lift ban on export of sugar, strong global trend and encouraging Q3 earnings announced by a few corporates.
Further, the surge in industrial production to 14.4 per cent during November 2006, the highest growth in more than a decade, also propelled the market, analysts said.
UPDATED AT 2:00
MUMBAI: The Bombay Stock Exchange Sensex surged more than 300 points at 1 pm on Friday on aggressive buying by funds as well as retail investors.
The BSE-30 share Sensex, which gathered nearly 270 points in the previous sessions, flared up by another 306.20 points at 13,936.91.
Similarly, the wide-based National Stock Exchange's Nifty spurted by 84.25 point at 4,026.50.
Marketmen said the market turned bullish after IT major and index heavy Infosys announced attractive third quarter results on Thursday.
They said the government's decision to lift the ban on sugar exports too had a positive impact on trading sentiments, triggering fresh buying activity in sugar company stocks.
Most BSE-30 and NSE-50 shares were in the green territory with sizeable gains.
Among banking stocks, State Bank of India, ICICI Bank and HDFC Bank were major gainers, contributing major support to the rise in the Sensex.
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
)
){kind=small}
){kind=small}
)
)
)
)
)
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}