Markets cheer Delhi news

Written by Markets Bureau | Mumbai | Updated: May 30 2009, 06:34am hrs
Buoyed by better-than-expected GDP growth in the fourth quarter of last fiscal, petroleum minister Murli Deoras statement on seeking Cabinet approval for fuel price deregulation and on the back of a solid surge in Asian equity markets, the 30-share Sensex of the BSE surged on Friday to close at 14,625.25 points, just shy of the psychological 15-k level.

The Sensex extended its gain by 329.24 points, or 2.30%, posting a weekly gain of 5.31%. Similarly, the broader S&P CNX Nifty of the NSE rallied higher by 2.58%, or 111.85 points, at 4,448.95 points, recording a weekly gain of 4.96%. May has been one of the best months for the domestic equity bourses in recent times, with the Sensex recording a monthly gain of 28.26% and the Nifty gaining 28.06%.

In line with ministerial announcements in New Delhi, shares of Indian Oil Corporation, Hindustan Petroleum Corporation Ltd and Bharat Petroleum Corporation Ltd soared by 6.90%, 8.33% and 3.75%, respectively on the BSE. Similarly, those of steelmakers Tata Steel, SAIL, JSW Steel, Jindal Steel and Bhushan Steel, among others, were in demand after Union steel minister Virbhadra Singh hinted at levying an additional tax on steel imports.

According to provisional figures released by the stock exchanges, foreign institutional investors were net buyers of equity worth Rs 272.77 crore, while domestic institutional investors bought equity worth Rs 873 crore. Market breadth, indicating overall health, remained extremely strong throughout the day, with 2,147 stocks advancing, compared with 649 stocks that declined on the BSE.