Sensex up 143 pts at fresh 30-month-high
Mumbai, Aug. 9: Real estate stock DLF, ICICI Bank, Tata Motors and metal stocks along with a strong opening by European markets pushed the Sensex and the Nifty to their two and half year highs on Monday.
Sentiment got a further boost on the government’s announcement that exempts public sector units from the minimum 25 per cent public shareholding.
After this amendment, about 20 PSUs will get relaxation from this guideline, and only 15 PSUs will have to go in for follow on offers.
The PSUs which will be exempted include SJVNL, Power Finance Corporation, Mangalore Refinery, National Aluminium, Power Grid Corporation and SAIL. The total amount that will be raised by only 15 PSUs will be just Rs 20,000 crores.
That means, a massive Rs 1,05,000 crores lower than the earlier Rs 1,25,000 crores said Mr Jagannadham Thunuguntla of SMC Capitals Limited. “This is quite a sensible and practical decision by the finance ministry, taking into account the absorbing capability of the market and the prevailing market conditions. Otherwise, there would have been a ‘stampede’ of public issues causing enormous stress both on primary as well as secondary markets,” he said.
There was excitement in the market as the Nifty crossed the hurdle of 5480 to close at 5486.15 up 46.90 points. The Sensex closed 143.51 points up at 18,287.50. “ For the Nifty Tuesday is a crucial day and the major hurdle would be 5505 and if it can close above this level then we may see good buying coming in which can take Nifty to further highs. On the flip side if it falls below 5400 then we may see profit booking,” said Mr Alex Mathews, of Geojit BNP Paribas.
The markets opened flat as Asian clues were relatively negative following the lowering of growth outlook for the US and Japan by Goldman Sachs. But the Indian markets picked up on buying in real estate, bank and metals stocks and support from the European markets.
Heavyweight RIL remained negative on news that it may not go it alone in its shale gas purchases in the US and may look for partners.
Post new comment