Post Session- D-Street swings into Diwali spirit as Sensex closes at record high Analysis for Oct 31, 2013

Posted By: Religare
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Continued robust buying by foreign investors and a sharp rally in PSU banks pushed the 30-share Sensex, up by 130 points, to a record closing high today as Dalal-Street swung into the festive spirit ahead of the festival of Diwali. PSU banks such as Bank of India surged on better-than expected Q2 results on hopes of stability in asset quality. Betting big on the India growth story, Foreign Intuitional Investors (FIIs) remained net buyers in the Indian market for the 19th consecutive session on Wednesday. With the US Federal Reserve"s sticking to record stimulus, emerging markets such as India are likely to continue to see further foreign fund inflows amid the availability of cheap money in the US. After a steady start, markets picked up steam in the last few hours as traders rolled over their positions on the day of the expiry of the October F&O contracts.

Asian stocks ended lower today on concerns that the US Federal Reserve may start scaling back QE as soon as the world"s biggest economy shows further improvement. The central bank maintained the current pace of QE even as it stressed on underlying strength in the economy, a sign that the Fed may start scaling back its easing plan once the economy improves. China"s Shanghai Composite ended lower as earnings at banks and consumer staples disappointed while bad loans at big Chinese banks surged to the highest level since 2010. Hang Seng ended lower on concerns that the Fed may start tapering QE in the coming months. Japan"s Nikkei 225 fell as a stronger yen dimmed the outlook for exporters. The yen rose as the Bank of Japan refrained from further monetary easing steps.

The BSE SENSEX closed at 21,164.52, up by 130.55 points or by 0.62 per cent, and the NSE Nifty ended at 6,299.15, up by 47.45 points or by 0.76 per cent.

The BSE Sensex touched intraday high of 21,205.44 and intraday low of 20,991.98 The NSE Nifty touched intraday high of 6,309.05 and intraday low of 6,235.9.

Meanwhile, the BSE MIDCAP closed at 6,107.35, up by 86.34 points or by 1.43 per cent, while the BSE SMLCAP ended at 5,896.11, up by 31.32 points or by 0.53 per cent.

On the Sectoral front, Consumer Durables and PSU advanced 2.65 per cent and 2.47 per cent, respectively.

The Market breadth, indicating the overall health of the market, was strong. On BSE out of total shares traded 2730, shares advanced were 1356 while 1191 shares declined and 183 were unchanged.

The top gainers of the BSE Sensex pack were State Bank of India (Rs. 1795.50,+4.33%), Tata Steel Ltd. (Rs. 334.40,+2.45%), GAIL (India) Ltd. (Rs. 352.85,+2.31%), Tata Power Company Ltd. (Rs. 82.05,+1.99%), ICICI Bank Ltd. (Rs. 1121.05,+1.96%), among others.

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Story first published: Thursday, October 31, 2013, 17:00 [IST]
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