Sensex rallies 382 points as Bernanke hints at continued stimulus

The key domestic benchmarks witnessed a surge on Thursday as the Sensex rallied by 382 points tracking sharp gains in Asian and European markets amid hopes that the US Federal Reserve may maintain stimulus for a longer period, easing concerns over foreign fund outflows, sparking a recovery in the rupee.

Fed Chairman Ben Bernanke called for highly accommodative monetary policy for the foreseeable future to support the world"s biggest economy. The minutes from the central bank"s last meet showed that many officials were waiting to see further improvement in the labour market before a decision to reduce the Fed"s USD 85 billion monthly bond buying program this year.

Asian markets surged as sentiment was lifted by Ben Bernanke"s assurances that the Fed will stick with its highly accommodative monetary policy for a foreseeable future. China"s Shanghai Composite surged over 3% amid speculation that policymakers may take measures to accelerate economic growth including efforts to boost investment in urban infrastructure, affordable housing and public services to bolster domestic consumption. Hang Seng surged as investors bet that a continued easy money policy in the US many help bolster economic growth. Nikkei 225 ended higher as the Bank of Japan upgraded its outlook for Japan"s economy while leaving its stimulus measures intact.

The BSE SENSEX closed at 19,676.06, up by 381.94 points or by 1.98 per cent and the NSE Nifty ended at 5,935.1, up by 118.4 points or by 2.04 per cent.

The BSE Sensex touched intraday high of 19,723.51 and intraday low of 19,468.46. The NSE Nifty touched intraday high of 5,948.85 and intraday low of 5,887.95.

Meanwhile, the BSE MIDCAP closed at 6,048.54, up by 40.47 points or by 0.67 per cent, while the BSE SMLCAP ended at 5,747.84, up by 37.82 points or by 0.66 per cent.

On the Sectoral front, Metal and Banking surged 3 per cent and 2.48 per cent, respectively.

The Market breadth, indicating the overall health of the market, was strong. On BSE out of total shares traded 2542, shares advanced were 1402 while 987 shares declined and 153 were unchanged.

The top gainers of the BSE Sensex pack were Sterlite Industries (India) Ltd. (Rs. 87.70,+4.78%), Hindalco Industries Ltd. (Rs. 102.80,+4.74%), HDFC Bank Ltd. (Rs. 681.15,+3.32%), Bharti Airtel Ltd. (Rs. 300.00,+3.31%), Tata Consultancy Services Ltd. (Rs. 1560.30,+3.10%), among others.

Read more about: sensex, nifty
Story first published: Thursday, July 11, 2013, 16:36 [IST]
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