Closing: Low inflation boosts Sensex above 10k level

Closing: Low inflation boosts Sensex above 10k level

The Bombay Stock Exchange benchmark Sensex recovered from past months of choppy trade on Thursday, 18 December to end 3.72% higher, crossing the 10,000 mark.

Buying was boosted after the inflation data was released indicating better than expected fall to 6.84% for week ended 6 December, lowest in nine months.

The 30-share BSE index had commenced trading higher by 83 points up, after a brief slip in the late morning trade it gained 361.14 points to end at 10,076.43 as investors bought stocks in capital good, bank, realty, power and information technology sectors.

The broad based 50-share National Stock Exchange index Nifty also shot up by 106.40 points to end at 3060.75, one of its highest.

The Sensex had spurted over 300 points late afternoon to touch 10,000 level around 2pm.

Trading sentiment was also urged by expectations of another fiscal stimulus by the government next week to lift India’s slowing economic growth.

Satyam Computers stocks rebounded on Thursday after receiving a battering in Wednesday’s session by investors’ resentment over company’s decision to buy parts of Maytas companies. Satyam stocks gained 7.15% to Rs169.35 on overnight US markets rise.

Leading the day’s rally was DLF, which rose by 9.56% to Rs277.40, followed by Jaiprakash Associates (9.36%, Rs84.15), Reliance Infrastructure (9.32%, Rs600.35), ICICI Bank Ltd (9.16%, Rs471.35) and State Bank of India (7.88%, Rs1295.85).

Volume of trade was highest among Reliance industries, Suzlon Energy and Unitech Ltd.

Meanwhile with the effect of Opec and US Fed cuts fading but hopes on Bank of Japan slashing rates Asian markets witnessed mixed trading. Japan’s Nikkei ended by 0.6% up and Hang Seng ended flat.