Sensex zooms on good news
The Sensex soared to a 21-month high on a cocktail of positive news ranging from good global cues, rise in core sector growth at 7.1 per cent in January against 6.1 in December, a surge of 34 per cent in exports and the positives from the Budget. The Sensex zoomed 623 points, recording the single largest day rally of 3.5 per cent since
May 27, 2009. It closed at 18,446.50 while the Nifty was up 189.05 points at 5,522.30. The Sensex had soared nearly 600 points post-Budget announcement on Monday and traders stuck with shares after the Nifty touched 5,230 used the rally to book profits. Mr Pradip Hotchandani of Anagram Securities said the deficit being brought down to 4.6 per cent in the Budget was more than what the street expected. Even the government’s borrowing, finance minister Pranab Mukherjee indicated, would be less at `3.4 lakh crore.
The softening in oil prices was another trigger for the markets soaring beyond expectation. Traders are expecting a resolution of the Libyan crisis in the next 48 hours, which will also help oil prices stabilise. Libya is the 12th largest exporter of oil. Since the domestic markets are closed on Wednesday for the Mahashivratri holiday, they built up positions in the hope of making a profit on Thursday. However, a further worsening of the situation in Libya, with the US repositioning forces near that country, could upset their apple-cart.
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