By IANS,
Mumbai : Buoyed by Finance Minister Pranab Mukherjee’s statement on the economy and year-end buying by fund managers, a benchmark index of the Indian equities markets recorded handsome gains to shut shop 539 points up Wednesday.
The sensitive index (Sensex) of the Bombay Stock Exchange (BSE), which opened at 16,723.96 points, ended at 17,231.11 points, up 539.11 points or 3.23 percent from its previous close at 16,692 points.
At the National Stock Exchange (NSE), the broader 50-share S&P CNX Nifty closed at 5,144.6 points, against the previous close at 4,985.85 points, a gain of 3.18 percent or 158.75 points.
Broader market indices also closed in the green, with the BSE midcap index up 1.57 percent and the BSE small cap index ruling 1.51 percent higher.
The market breadth was positive, with 1,907 stocks advancing, 924 declining and 91 remaining unchanged.
Investors were also enthused after Finance Minister Pranab Mukherjee said a growth rate of 9-10 percent was within sight and would be achieved very soon.
“The target of growth of 9-10 percent has been there for a very long period. It is now within our reach and we shall achieve it,” Mukherjee told the 104th annual session of the PHD Chamber of Commerce and Industry in Delhi.
All stocks on the 30-scrip Sensex ended in the green. Some of them were Hindalco, up 7.77 percent at Rs.153.20; NTPC, up 6.96 percent at Rs.229.90; Sterlite, up 5.05 percent at Rs.847.20; and RIL, up 4.62 percent at Rs.1,065.90.
“The rally is a combination of many factors. The finance minister’s statement did help, but it’s also the closing time for many foreign funds, hedge funds, who buy at this time usually to prop the value of their portfolio,” said SMC Capitals equity head Jagannadham Thunuguntla.
Data with markets watchdog Securities and Exchange Board of India (SEBI) showed that foreign funds were net buyers Wednesday, having bought scrips worth $48.06 million.
Other major Asian markets also closed in the green.
A key Japanese index, the Nikkei, closed on a three-month high, ending 1.91 percent or 194.56 points up at 10,378.03 points.
In China, the Shanghai composite index shut 0.76 percent higher in the green at 3,073.78 points backed by gains in telecom stocks.
The Kospi, the benchmark index of the Korean Stock Exchange, was up 0.35 percent at 1,661.35 points.
The Hang Seng, a benchmark index of the Hong Kong Stock Exchange, too closed in the green after selling pressure pulled it down during the day. It ended at 21,328.74 points, 1.12 percent or 236.7 points down.
European markets, on the last full day of trading before the Christmas holidays, were ruling strong.
The FTSE 100 index, benchmark index of the London Stock Exchange, was ruling 0.89 percent higher at 5,375.85 points.
The French index, CAC 40, was 0.78 percent up at 3,928.75 points, while its German peer, the DAX, was trading 0.56 percent higher at 5,978.95 points.