Sensex breaches 21k after a month

Written by Press Trust of India | Updated: Feb 27 2014, 09:21am hrs
The benchmark BSE Sensex on Wednesday breached the 21,000-mark after a month, but settled the day a tad lower at 20,986.99 a gain of 135 points amid mixed trends from global markets.

Indias largest gas distributor, GAIL, rose 2.97% to end the day as the biggest Sensex gainer. Cigarette major ITC recorded a smart gain of 2.07%.

IT stocks continued their winning streak for the second day. Wipro rose 1.38% to trade at a 52-week high. Infosys was up 0.56%. Brokers attributed the rally to short coverings by operators because the February series of Futures & Options was expiring on Wednesday.

IT stocks continued to see buying interest, with Wipro making its 52-week-high level. FIIs continued to show optimism in the Indian stock market and were net buyers, particularly for last two weeks, and this also boosted market sentiment, said Rakesh Goyal, senior vice-president, Bonanza Portfolio.

Foreign institutional investors (FIIs) bought shares worth a net R423.41 crore on Tuesday, as per provisional data from stock exchanges.

The 30-share barometer resumed the day stable. It touched an intra-day high of 21,005.04, but lost a little momentum and end at 20,986.99, a rise of 134.52 points from its last close.

In straight four sessions, the Sensex has surged 450.35 points, or 2.19%.

The previous time the index breached the 21,000 level was on January 24, 2014, when it closed the day at 21,333 points.

The Nifty on the NSE also improved further by 38.75 points to 6,238.80. Other major Sensex gainers were M&M (2%), Dr Reddy's Lab (1.77%), BHEL (1.63%), Sun Pharma (1.33%), Hero Motocorp (1.25%) and Bajaj Auto (1.09%).

Tata Steel plunged 3.23%, SSLT 2.62%, Tata Power 1.85% and Coal India 1.12%. Markets traded range-bound for the better part of the day and were a bit cautious with thin volumes as the February series of F&O expired today, said Jignesh Chaudhary, head of research, Veracity Broking Services.

Overall, 10 out of 12 sectoral indices closed in the green. Of 30 Sensex scrips, 22 finished with gains. Among sectoral indices, FMCG rose 0.99%, consumer goods 0.94%, auto 0.86%, healthcare 0.82% and Bankex 0.56%.

Market breadth turned positive as 1,357 ended higher, while 1,339 finished lower and 145 ruled steady.

Asian stocks ended mixed between gains and losses as energy shares advanced, countering decline in raw material producers. Key benchmark indices in China, Hong Kong, South Korea and Taiwan rose by 0.29-0.54%. Indices in Singapore and Japan fell 0.50-0.54%.