Share Markets rejoice as Sensex skyrockets to 14,000

Share markets skyrocketed today with Bombay Stock Exchange’s Sensex up by 2,110.79 points(7.34 per cent) at 14,272.63. The National Stock Exchange’s Nifty shot up by 636.40 points, or 17.77 per cent, at 4,308.05.

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All sectoral indces are having a boom time with banking sector in the lead. Sharemarkets are finally experiencing boom time as the air of political uncertainty disappeared with the victory of United Progressive Alliance in the Lok Sabha elections.

Experts believe that the Sensex can rise further by the time the new government comes up witht the Union budget.The rupee has also experienced the biggest gain in 11 years. It moved stronger by 152 paise or 3.08 per cent to a five-month high of 47.88/89, its largest gain in eleven years against the dollar.

The political stability that has gained ground after the just concluded general election is cited to be one of the driving factors. The government is set to push forward the reforms agenda making inroads for increased capital inflows, the main driver for the rupee.

Reliance Industries is the biggest contributor to the rise in market capitalisation reaching the 14,000 level along with other biggie stocks like BHEL and Bharti Airtel.The top five index-gainers in today’s historic rally were — Anil Ambani group firms Reliance Communication and Reliance Infrastructure, engineering major Larsen and Toubro, the flagship company of Jaypee Group Jaiprakash Associates and country’s largest private sector lender ICICI Bank.

Sectors like infrastructure, real estate, telecom, banking, retail, power and education are seen to be the boom-time sectors. Telecom may witness speedy growth if the govt speeds up the 3G bidding process, merges BSNL with MTNL and divests its 26 percent stake in Tata Communcations.

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Posted by Starwin on 18th May, 2009

Share Markets rejoice as Sensex skyrockets to 14,000

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