Bulls run riot; SP, reforms propel indices

Commentary

oi-Sunil

By Sunil Fernandes

Updated: Friday, September 21, 2012, 15:39 [IST]

The benchmark S&P CNX Nifty hit a 52-week high today, as frenzied buying gripped the bourses, following a slew of reform measures and renewed support from SP to the tottering UPA government.

The BSE Sensex ended the day higher by 403 points, while the Nifty closed with gains of 137 points. The government's refusal to roll back any of the reforms also saw sentiments turning buoyant. Markets saw increased momentum after a statement from the SP Chief supporting the UPA government.

The gains were led by a sharp rally in banking stocks, with Axis Bank leading the gains from the index stocks surging more than 7%, while ICICI Bank rallied almost 5%. PSU banking stocks saw hectic buying with State Bank of India, Bank of Baroda, Canara Bank and Bank of India seeing large scale buying interest.
Other shares that saw whopping gains were Reliance Infrastructure, Jaiprakash Associates, Steel Authority of India and Bharat Heavy.

Shares of technology stocks, however, came in for selling pressure with TCS ending the day in the red, while Infosys witnessed a subdued trend through the day, on account of the sharp appreciation in the rupee. Meanwhile, positive opening in Europe and strong closing in Asia also helped improve sentiments.

The momentum in the markets is expected to continue depending on the political developments in the country.

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