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Indian markets shrug off US shutdown, Sensex soars 189 pts

Oct 05 2013, 19:47 IST
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SummaryGoverment's move to infuse funds to enable PSU banks to offer cheaper retail loans was cheered by investors.

The BSE benchmark Sensex shot up 189 points to end this week at 19,915.95 - after topping the 20,000 mark - on fresh buying by operators and investors despite partial shutdown of the US governemnt.

The goverment's move to infuse funds to enable PSU banks to offer cheaper retail loans was cheered by investors. The rise in rupee value against the dollar and sustained foreign capital inflows into equity market boosted the sentiment.

Renewed buying on expectations that economic growth would improve in the second half of the fiscal year, too, aided the firm trend.

The S&P BSE Sensex resumed lower at 19,643.89 and dropped further to 19,264.72. But the 30-share index recovered afterwards to 20,052.00 before ending the truncated week at 19,915.95, posting a gain of 188.68 points, or 0.96 per cent.

The NSE's 50-share barometer, Nifty, firmed up by 74.10 points, or 1.27 per cent, to settle at 5,907.30. Stock market was closed on October 2 on account of Gandhi Jayanti.

The market received a fillip after the current account deficit (CAD) numbers came better-than-expected and auto sales picked up last month, helping investors to shrug off concerns about the US government shutdown.

"Trading sentiment was cautious after the news of US government shutdown. However, markets remained largely unaffected by this development," said Rakesh Goyal, Senior Vice-President at Bonanza Portfolio Ltd.

"CAD widened to 4.9 per cent of GDP at USD 21.8 billion in the April-June quarter. However, it came better-than- expected," he added.

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