Dalal Street on Friday surged to its highest close in nearly three years as banks and blue chips gained ground amid continuous flow of corporate earnings topping estimates, coupled with encouraging news from the US over resolving the government shutdown issue and continuing monetary stimulus.
The S&P BSE Sensex shot up by 467.38 points or 2.29 per cent, to 20,882.89, completing its third week of gains, and also its highest level since 20,932.48 registered on November 9, 2010. Market capitalisation also soared by Rs 1.07 lakh crore.
The 50-share CNX Nifty on the NSE rose 143.50 points, or 2.37 per cent, to end at 6,189.35, the highest level since 6,194.25 registered on November 11, 2010.
Dipen Shah, head of private client group research, Kotak Securities, said: “Markets rose sharply on Friday buoyed by the postponement of the debt ceiling issue and on likely expectations that the Fed will not taper the stimulus programme in its next meeting, pending final resolution of the debt ceiling programme.”
Foreign institutional investors bought Rs 1,109 crore worth of shares on Thursday, a tenth consecutive session of purchases that bought their total to Rs 7,847 crore. The sentiment was also bolstered after LIC chairman SK Roy told a television channel that the insurer will invest Rs 40,000 crore in domestic equities in fiscal 2014.