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Sensex at 4-week high, up 215 pts

BT Online Bureau     August 6, 2012
Buoyed by nearly 6 per cent jump in Reliance Industries, Sensex on Monday rose 215 points to record its highest close since July 11 amid new Finance Minister P Chidambaram promising fine-tuning of policies and corrective steps to put in place a stable and non-adversarial tax regime.

The BSE benchmark index shot up by 215.03 points, or 1.25 per cent, to end at 17,412.96, its highest closing in four weeks, as foreign funds flowed in helping the bluechip index snap a two-day downtrend when it lost 60 points.

The 50-share National Stock Exchange index Nifty shot up by 66.85 points, or 1.28 per cent to 5,282.55.

Sensex's rise was led by RIL, which notched up its best daily gain in three years, ahead of a meeting of an oversight panel to consider clearing annual investment plans for KG-D6.

Investors were also enthused by Chidambaram's comments that were made before markets closed, said traders. Unveiling a broad roadmap to regain investor confidence, he also said the government will work with RBI to moderate inflation.

"...sometimes it is necessary to take carefully calibrated risks in order to stimulate investment and to ease the burden on consumers," Chidambaram said.

Private banks, including HDFC bank and ICICI Bank, rose in the 1.5-2 per cent range on Monday, helping Sensex extend gains.

Metal and auto stocks were among the 21 stocks in Sensex that ended with gains. Investor wealth across the market rose by nearly Rs 48,000 crore as nearly 1,676 scrips gained.

However, pharma scrips like Dr Reddys and Sun Pharma, and FMCG stocks including ITC and HUL finished with losses as investors moved money out of defensive sectors, said dealers.

Brokers also said trading mood improved on global cues influenced by higher-than-forecast US jobs data at 163,000 for July that came out after Indian markets closed on Friday.

"The undercurrent across Asian markets was buoyed by Friday's strong gains on Wall Street and the European markets," said Amar Ambani, Head of Research, IIFL.

Indices in China, Hong Kong, Singapore and South Korea ended up between 0.67 per cent and 2.01 per cent. From Europe, key indices from France, Germany and the UK were also up.

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