Sensex surges to six-week high led by Reliance group stocks
The Bombay Stock Exchange benchmark Sensex today surged by 273 points to a six-week high on fund-based buying in blue-chips, particularly Reliance group stocks.
The 30-share index shot up by 273.22 points to 17,338.17 points, a level last seen on May 3.
The broad-based National Stock Exchange index Nifty spurted by 78.35 points to 5,197.70 points.
The market sentiment boosted after Reliance Industries, the most valuable company, climbed to its highest in a month on agreeing to take control of Infotel Broadband Services, giving it access to the wireless Internet business. RIL jumped 1.64 percent to close at Rs 1,063.40.
Infosys Technologies, the second heaviest on the Sensex, rose by 4.32 percent to Rs 2,747.25.
All Reliance companies' stocks belonging to both Mukesh Ambani and Anil Ambani brothers recorded handsome gains.
Reliance Industrial Infra rose by 16.88 percent to Rs 902.10 on heavy buying by foreign funds.
Shares of Anil Ambani group companies, Reliance Natural Resources shot up by 17 percent to Rs 60.90, RCom by 3.71 percent to Rs 179, Reliance Power by 5.53 percent to Rs 167.90 and Reliance Mediaworkds by 3.88 percent to Rs 66.90.
Banking stocks were also in keen demand as state-run IDBI Bank jumped the most in more than four months after the government approved a plan to inject funds to bolster its capital. The stock rose by 4.81 per cent to Rs 117.75.
Shares in five state-run banks rose after the government approved a plan to inject over Rs 6,200 crore in capital to help them boost lending.
In the 30 BSE index components, 25 stocks closed with gains while five ended with losses.
The IT sector index was on the top with a handsome gain of 3.69 percent at 5,351.98 points, followed by Teck index by 2.76 percent to 3,266.02. Oil and gas index rose by 1.87 percent to 10,362.91, metal index by 1.72 percent to 14,679.90 and banking index by 0.99 percent to 10,854.17.