Sensex rises most in six months on global cues
07 Sep 2012
Indian stocks tracked global equities to surge the most since June after the European Central Bank's (ECB) announced an unlimited bond-buying plan that upped demand for riskier assets.
The Sensex, rose 2 per cent to 17,683.73 at close in Mumbai, the most since 29 June. Reliance Industries Ltd (RIL), rose to a month's high after CLSA Asia-Pacific Markets raised its price estimate on the stock. ICICI Bank Ltd, the biggest private lender, surged 4.6 per cent, the highest among peers, while Tata Motors Ltd gained 4.4 per cent.
ECB president Mario Draghi said yesterday that policy makers have agreed to an unlimited bond-purchase programme to cut interest rates for struggling economies and strengthen the euro. The EU, which is India's largest trading partner, accounted for 17.2 per cent of the India's exports in the six months ended September 2011, according to data from the commerce ministry.
Asian stocks surged, with the MSCI Asia Pacific Index gaining 2.2 per cent, its maximum in 2012, while the Stoxx Europe 600 Index (SXXP) gained 1.4 per cent in London. Futures on the Standard & Poor's 500 Index (SPXL1) rose 0.3 per cent.
The Sensex has risen 14 per cent this year, following high foreign investment inflows, which was the highest among 10 Asian markets excluding China. Overseas funds picked up $24.7 million of shares on 6 September, boosting the level of their investment in local shares this year to $12.3 billion, according to data from the market regulator.
All 30 Sensex stocks were up with ICICI Bank rising 4.6 per cent to Rs937.85, the highest since 29 June, while State Bank of India rose 2.1 per cent to Rs1,892.0, the most since 7 August.
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