Sensex ends near 19,200; highest since April 2011

MUMBAI Thu Nov 29, 2012 7:14pm IST

1 of 2. Stock brokers trade in a brokerage firm in the eastern Indian city of Kolkata February 16, 2009.

Credit: Reuters/Jayanta Shaw/Files

Related Topics

Stocks

   

MUMBAI (Reuters) - The BSE Sensex surged on Thursday to close at its highest in 19 months after the government agreed to a vote in parliament on allowing foreign entry in multi-brand retail, raising hopes that key reforms will pass through.

Shares were further boosted after Goldman Sachs upgraded Indian stocks to 'overweight' from 'market-weight', citing growth recovery and inflation moderation ahead. The investment bank pegged the December 2013 Nifty target at 6,600 points.

Traders say Moody's stable outlook on India has also eased a potential ratings downgrade worries from Standard & Poor's and Fitch in the near term, adding to positive sentiment.

The rupee also appreciated by more than 1 percent versus the dollar, further helping the markets. Globally, shares rose on Thursday after a senior U.S. lawmaker said the "fiscal cliff" might be resolved.

"India is far larger than just retail, but there is some significance attached to it, so if FDI goes through, it will imply the government means business," said Paras Adenwala, MD & Principal Portfolio Manager, Capital Portfolio Advisors.

"Even if some bills are cleared in the ongoing session of parliament, it would be taken constructively by investors."

The BSE Sensex ended up 1.75 percent, or 328.83 points, at 19,170.91, its highest close since April 28, 2011

The 50-share Nifty gained 1.7 percent, or 97.55 points, to 5,825.00, on the last day of the November F&O series with high volumes. This was its highest close since April 27, 2011.

The market is awaiting the September-quarter gross domestic product data due to be released at 11 a.m. on Friday, with growth seen slowing to its lowest in nearly a decade for the year ending in March.

Rate-sensitive stocks such as ICICI Bank rallied on hopes the central bank may cut policy rates if it is satisfied with government measures to reduce fiscal deficit.

Banks also rose on hopes that government would raise the cap on foreign direct investment in insurance, and open the pension sector to foreign investors, tracking new-found optimism around FDI in retail.

ICICI Bank rose 4.6 percent, while HDFC Bank gained 2.8 percent.

Among other rate-sensitive stocks, Tata Motors rose 4.4 percent, while Bajaj Auto Ltd (BAJA.NS) ended 4.7 percent higher.

Delhi-based property developers surged, with DLF rose 1.6 percent and Unitech gained 8.6 percent.

Among capital goods stocks that surged were Larsen & Toubro (LART.NS), which rose 2.43, while Punj Lloyd Ltd (PUJL.NS) added 3.74 percent.

Cinemax India Ltd (CINX.NS), a theatre chain operator, rose 5 percent after it said its controlling shareholders will sell a 69.27 percent stake in the company to local rival PVR Ltd (PVRL.NS) for 3.95 billion rupees.

Shares in PVR also gained 6.4 percent.

However, among stocks that fell, India's GMR Infrastructure fell 1.4 percent after Maldives cancelled its biggest foreign investment project, a $511 million deal with GMR to develop an international airport.

Shares in Apollo Hospitals Enterprise fell 8.1 percent a day after a source said brokerage CLSA is selling its stake for $135 million.

Several block deals were struck in shares of Apollo Hospitals in the range of 821.75-836 rupees on the BSE and NSE, according to Reuters data.

(Additional reporting by Abhishek Vishnoi; Editing by Prateek Chatterjee)

FILED UNDER:
Photo

After wave of QE, onus shifts to leaders to boost economy

DAVOS, Switzerland - Central banks have done their best to rescue the world economy by printing money and politicians must now act fast to enact structural reforms and pro-investment policies to boost growth, central bankers said on Saturday.

Republic Day

Reuters Showcase

Banking Revolution

Banking Revolution

India turns to corner shops, mobile phones for banking revolution.  Full Article 

Nuclear Group

Nuclear Group

China urges India to take steps to satisfy standards of NSG  Full Article 

Gold Market

Gold Market

Chinese gold demand holds up ahead of holiday, Indian buying weak  Full Article 

India-U.S. Relations

India-U.S. Relations

Column - U.S. and India should join to balance China's rise  Full Article 

Padma Bhushan

Padma Bhushan

India honours Bill Gates with civilian award  Full Article 

Fashionable Modi

Fashionable Modi

When Modi met Obama, his name was all over - his suit  Full Article 

Nuclear Deal

Nuclear Deal

Obama reveals nuclear breakthrough on landmark India trip  Full Article 

Australian Open

Australian Open

Serena avenges French Open loss to reach quarter-finals.  Full Article 

Climate Change

Climate Change

U.S.-China climate deal does not put pressure on India, says Modi  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device  Full Coverage