Tracking overnight gains on the Wall Street, the benchmark BSE Sensex today jumped by 119 points to nearly three-week high levels on the back of gains in IT and banking shares amid heavy capital inflows - gains in IT pack - Tata Consultancy Services (TCS), Infosys Ltd and Wipro - contributed over 71 points in the Sensex's 119-point rise. Bets on software exporters rose after a decline in US jobless claims data cemented hopes of a turnaround in the American economy.
After rising 41.88 points in the previous session, the BSE Sensex spurted by 118.99 points, or 0.56 per cent, to end at 21,193.58, a level last seen on December 10. Eighteen constituents of the 30-share index rose.
Bluechips in the financial space including HDFC Ltd, ICICI Bank and State Bank of India (SBI) also saw good buying. Others like ITC Ltd, Hindustan Unilever (HUL), Larsen & Toubro (L&T), Sun Pharmaceuticals Industries and Sesa Sterlite also ended in green.
Brokers said that investors were seen in the mood of portfolio building in the ensuing year after the monthly equity derivatives for December 2013 expired yesterday.
On a weekly basis, the BSE Sensex rose by 113.86 points.
The broad-based National Stock Exchange index NSE Nifty rose by 34.90 points, or 0.56 per cent, to 6,313.80 after touching the day's high of 6,324.90. Also, SX40 of MCX Stock Exchange firmed up by 61.33 points to end at 12,594.59.
FIIs pumped over Rs 743 crore yesterday in cash market.
Mirroring the rise in local stocks, the rupee was trading strong at 61.8 versus dollar compared to last close of 62.16.
Yesterday, the Dow Jones Industrial Average surged 122.33 points, or 0.75 per cent to close at 16,480. The S&P 500 made its 44th record close for this year after adding 8.7 points.
Sectorally, the BSE IT sector index gained the most by rising 1.71 per cent, followed by Healthcare index (0.68 per cent), FMCG index (0.58 per cent), and Banking index (0.52 per cent).
Sanjeev Zarbade, Vice President- Private Client Group Research, Kotak Securities:
US markets rose yesterday, with Wall Street continuing its record-setting advance after data showed fewer Americans than expected filing applications for jobless benefits last week, casting a positive light on the labor market.
With positive global cues, BSE Sensex saw a strong performance with support by banks and IT stocks. BSE IT index jumped 2 percent with Infosys, TCS and Wipro as major gainers. However, oil & gas and auto stocks were under selling pressure. Maruti, Reliance, BHEL and Bajaj Auto were laggards. The action has shifted to midcaps.
OUTLOOK: Going ahead as we end the year, we may see further action in midcap names on account of NAV shoring. Beyond that, momentum in FII flows would determine market direction. Most experts believe that the December inflation reading would be lower. This might encourage the RBI to maintain status quo on interest rates. Thus, with the tapering event behind us and diminishing possibility of rate hike, there are no major market disruptive events in the near-term. That leaves earnings, which would be closely watched and depending on the earnings announcement individual stocks would react.
Gaurang Shah, Assistant Vice President, Geojit BNP Paribas Financial Services Ltd:
Markets were in positive note throughout the day with buying visible at lower levels. BSE Sensex traded well above the 21200 mark and Nifty was trading above 6300. It was an encouraging start for the new series of F&O segment as it was the first day for the Jan 2014 contract.
All sectoral indices were in green the only exception was that of oil & gas which was down marginally. The border markets were much higher than the benchmark index indicating a strong market breath. We expect the markets to continue its upward move to 6385/6400 levels in the next week hence recommend buying on dips.
Activity on the institution side likely to be on the lower side due to calendar year end.
BSE Sensex rises 119 pts to nearly three-week high;IT, banks shine
(Reuters) BSE Sensex rose on Friday, sending indexes to their second consecutive weekly gains, as technology stocks such as Infosys Ltd extended a rally this year after data continued to signal a sturdier U.S. economy.
Infosys Ltd rose 1.2 percent, having earlier come close to hitting a record high of 3,573 rupees last hit on Dec. 20, after the Wall Street hit a new peak on strong data from the holiday shopping season and a fall in initial jobless claims.
The broader NSE index provisionally rose 0.56 percent, for a weekly gain of 0.61 percent.
The benchmark BSE index provisionally rose 0.55 percent.