Taking a cue from the resolved P-notes (PNs) issue, markets took off from where it left on Friday. The 30-share Sensex of the Bombay Stock Exchange (BSE) reached its all time high of 20,024.87 and closed at 19,977.67, a change of 734.50 points or 3.82% from the previous close of 19,243.17. The Sensex has given a return of around 33% in last four months since it crossed 15K level on July 6, 2007. However, there are four sectoral indices in BSE stable belonging to capital goods, metals, PSU and banking sector that have outpaced Sensex in terms of return during the same period. Over the journey from 15K to 20K, BSE Metal index gave a return of 59.53%, BSE CG (Capital goods) and BSE Oil & Gas both gave a very noticeable return of around 53%, while BSE PSU and BSE Bankex gave a return of 40% and 31% respectively. On the rise in the BSE Metal index, experts opine that growth in the metal sector (SAIL and Tata steel) is mainly on account of domestic demand driven by boom in real estate and construction activities. Also, greater thrust given for the development of infrastructure by the government has also aided the growth of the sector. Amitabh Chakraborthy, president equity, Religare Securities, said, ?CG sector has caught the fancy of the investors with its high prospects and good earnings visibility. Already, these companies (L&T and BHEL) have large order positions in their books and if India has to grow, capital goods sector will have to show leap frog growth.? Market experts also reckons that with rupee appreciating against the dollar, some of those CG cos, which import some critical components for assembling or manufacturing, are able to execute their projects at a reduced cost.

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