Sensex surges over 844 pts at pre-close

Wed, Jul 23 03:50 PM

Mumbai, July 23 (PTI) Powered by the government's trust vote victory, the Bombay Stock Exchange benchmark Sensex surged over 844 points in pre-close trade today, the biggest gain in five months, as funds indulged in accumulating in bluechips from banking and capital goods sectors. The Sensex, which recorded a rise of over 1,650 points in last three trading sessions, shot up by 844.24 points at 14,948.44 at 1430 hrs.

The hefty gain was the first after an intra-day rally of 890 points on February 14, this year. The wide-based National Stock Exchange index Nifty spurted by 244.60 points at 4484.70 points at the same time as almost all the 50 stocks in its kitty were in positive zone.

The market turned cheerful after Prime Minister Manmohan Singh survived the confidence vote last evening in the parliament. An easing crude oil prices and a steep rise in stock prices in global markets were other positive factors which propelled the domestic bourses.

Marketmen said banking stocks were distinctly higher after the coalition government's victory in a parliamentary vote stoked speculation that new allies may permit changes to investment limits. They said the victory allows a mandate to revive bills in insurance and banking that had been held up under Left's pressure, who recently withdrew support to the government, as well as give overseas companies a bigger role in the financial sector.

Heavy machinery stocks in the capital goods sector were in demand on speculation that the victory might increase orders for turbines and generators used in reactors. PTI.

Inside News

Editor's picks