Sensex trades 400 pts up on economic stimulus

Sensex trades 400 pts up on economic stimulus

New Delhi: The benchmark Sensex on Monday afternoon, 8 December continued to surge above 400 points on heavy buying by funds and retailers encouraged by RBI’s announcement to infuse more liquidity and government’s over Rs30,000 crore stimulus package slowing Indian economy.

The 30-share index, BSE shot up by 455.86 points, or 4% at 9,418.97 at 2:05pm (IST) on renewed buying of realty, capital goods, auto, metals, banking, and oil and gas sectors.

The wide-based National Stock Exchange’s Nifty also rose by 142.05 points at 2,857.95 points.

The bullish trend began after the Reserve Bank of India cut key short-term lending and borrowing rates by 100 basis points each and pumped in Rs11,000 crore for housing and mirco industries to accelerate economic growth.

In the afternoon session capital goods and realty sector stocks were leading the rally. Tata Steel topped the gainers list by 11.10% to Rs202.75, Unitech made a comeback surging 10.41% to Rs33.95.

Realty sector stocks were also the top gainers in early trading, with the sector indice rising by 6.69%, followed by capital goods index that rose 4.81%.

Other gainers were Ambuja Cement (9.87%, Rs59.55), followed by communication companies IDEA (8.77%, Rs53.35) DLF and Tata Communication (8.75%, Rs448).

Asia traded firmly, gaining confidence on economic plans announced by US President-elect Barak Obama. Hong Kong share prices closed 8.7% higher and Nikkei at 5.2% closed its highest in a week.