Sensex hits a new high past 20k, ends 735 pts up
Sensex hits a new high past 20000, ends 735 pts up
Strong global markets, impressive results from some top notch companies and expectations of a cut in bank rates triggered a massive rally on the major Indian bourses today. As stocks cutting across sectors surged higher on sustained buying support, the benchmark BSE index Sensex created yet another record when it vaulted past the 20,000 mark for the first ever time in history.
The benchmark, which needed no more than five sessions to vault from 18,000 to 19,000 took a comparatively longer period for its next 1,000 points jump. However, considering the fact that it had plunged to as low as 17,171.45 on 22 October 2007, a week after scaling the 19k peak, its feat is simply incredible, to say the least. From that low on 22 October 2007, the Sensex has spurted over 2800 points in a short span of six sessions.
The market regulator’s restrictions on investments through Participatory Notes notwithstanding, stock prices have been moving up quite sharply over the past few sessions.
After opening on a buoyant note at 19,621.39, a positive gap of over 375 points, the Sensex sailed past 19,900 around noon thanks to strong buying in capital goods, oil, bank and telecom stocks. Auto and information technology stocks joined the rally a little later. Hectic buying was seen in several midcap and smallcap stocks as well.