Sensex breaches 25,000 barrier

The continuing optimism over revival of the economy pushed the BSE Sensex above 25,000 points and the NSE Nifty to a new high on Thursday. Metal, power and oil and gas shares lead the surge.

Besides, strong expectations that the European Central Bank will unveil a stimulus shortly helped the exchanges.

" We may see Sensex levels at 30,000 before Budget," said Motilal Oswal, chairman and managing director, Motilal Oswal Financial Services.

The Sensex resumed higher, but dropped to a low of 24,644.88. It later recovered sharply to settle at its new closing high of 25,019.51, a rise of 213.68 points, or 0.86 per cent. It breached the previous closing peak of 24,858.59 hit on June 3. The Nifty flared up by 71.85 points, or 0.97 per cent, to end at new peak of 7,474.10 surpassing its June 3 closing of 7,415.85.

The sentiment was further underpinned as overseas investors bought shares worth $ 32.25 million on Wednesday in a third straight session of buying.

Buying was strong with 11 of 12 sectoral indices posting gains between 0.17 per cent and 3.33 per cent. Metal, oil and gas, power, FMCG, IT and capital goods led the surge. Persistent capital inflow from foreign funds into equity market and widespread buying by retail investors boosted the market sentiment, said traders.

"There are no visible nearterm negatives. Investors are building portfolios ahead of the Union Budget, which would be the next big event. FIIs continue to support. The undercurrent is still positive," said Suresh Parmar, head, institutional equities, KJMC Capital Markets.

Metal and oil and gas prices usually go up after an economic stimulus on hopes some funds will come into such assets. Sensex- based counters like Tata Motors, Sesa Sterlite, ONGC, Infosys, HUL, RIL, ITC, Tata Steel, Hindalco, TCS, HDFC, Axis Bank, Tata Power, Wipro, Hero MotoCorp and Gail closed with sharp to marked gains.