Sensex soars past 19K mark on reform hopes

The benchmark Sensex of the Bombay Stock Exchange continued to maintain a level above 19,000-level, which it breached for first time in nearly 15 months. In late morning trade today, the Sensex surged 177 points on fresh buying on hopes of more economic reforms.

Insurance companies were strong gainers amid indications that the government would today raise the limit on foreign direct investment in these companies to 49 per cent from the present 26 per cent. The pension sector is also expected to be liberalised.

Persistent inflows of foreign capital into equity market also boosted the market sentiment. Foreign institutional investors (FIIs) bought shares worth a net Rs602.39 crore on Wednesday, as per provisional figures on the stock exchanges.

The Sensex had resumed higher at 18,939.75 and shot up further to cross 19,000 level, last seen on 15 July 2011, at 19,087.60 before quoting at 19,046.36 at 10.30 am, a net gain of 176.67 points or 0.94 per cent.

The National Stock Exchange's 50-share Nifty also firmed up by 57.70 points, or 1.01 per cent, to 5,788.95 at 1030hrs.

Major gainers were BHEL (3.65 per cent), ICICI Bank (1.83 per cent), HDFC Bank (1.83 per cent), HDFC (1.80 per cent), Tata Motors (1.77 per cent) and Bharti Airtel (1.64 per cent).