Sensex zooms 409 points
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The BSE benchmark Sensex surged by over 400 points past the psychological 19,000-mark on Monday after a gap of 32 months, driven by banking, refinery and metal stocks as investors bet big on sustained economic growth.
Amid firm global cues, the 30-share index of the Bombay Stock Exchange, which had gained 133 points in the previous session, spurted by 408.67 points, or 2.17 per cent to 19,208.33, a level last seen around January 18, 2008.
Similarly, the broad-based National Stock Exchange Nifty also breached the 5,700-level by adding 119.95 points, or 2.13 per cent, to 5,760. The investor sentiment was upbeat after industrial output grew at a faster rate than expected, signalling all-round economic expansion.
A rise in Asian stock markets, led by Japan, and a higher opening in Europe after central bankers and regulators agreed on new rules to ensure a repeat of the financial crisis that broke out in 2008.
A surge in China's industrial output boosted optimism that the global recovery is on a sure-footing, propelling domestic equity markets as well. Besides, banking, refinery and realty sectors, capital goods stocks were in demand following reports that factory output increased by 13.8 per cent in July from a year earlier.
The banking sector index gained by 3.62 per cent to 13,454.56 as segment major and state-run State Bank of India rose by Rs 164.75 to Rs 3,147.25 and private mortage firm HDFC Ltd by Rs 33.55 to Rs 664.15 on expectations that growth of the economy would raise demand for loans.
The oil and gas sector index was the second-best performer, rising by 2.57 per cent to 10,436.47 as market heavyweight Reliance Industries shot up by Rs 34.25 to Rs 992.20 following reports that the company has completed the acquisition of a 60 per cent stake in the Marcellus Shale gas asset in the US.
With the general rising trend, the mid cap sector index gained 0.77 per cent to 8,112.37 and the small cap index rose by 0.22 per cent to 10,271.94.
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