Sensex hits 20,000 for the first time in 3 months
The BSE Sensex hit the key 20,000 mark for the first time since January 31, 2013 amid a strong global rally that also sent the U.S.' S&P 500 to another record high overnight.
Markets were choppy through the day, but a strong push towards the end of the session saw the Sensex take out the psychological barrier. The Sensex closed 101 points or 0.5 per cent higher at 19,990 after hitting a high of 20,037. The 50-share Nifty benchmark closed at 6,069, up 26 points, after hitting an intraday high of 6,084.
Equities rallied for the third straight day mainly on the back of strong participation by foreign Institutional Investors (FIIs), who have bought a net $680 million of Indian stocks in the three sessions to May 3, taking the 2013 net buying to a total of $12.17 billion.
Market analysts differed in their outlook amid a resurgence in equities worldwide. Independent analyst Sarvendra Srivastava raised his target on the Nifty to 6,250-6,300 after earlier saying that the Nifty may hit 6,150 in the short term.
However, SV Prasad of Chime Consulting advised caution, saying some amount of profit booking was in the order as markets have run up a lot.
22 stocks closed higher on the Nifty, led by mortgage lender HDFC, which surged nearly 4 per cent to a record high on the back of 17 per cent jump in quarterly net profit. Drug maker Lupin rose over 2 per cent on strong Q4 earnings.
Index heavyweight ITC also closed with over 2 per cent gains after the Uttar Pradesh government reduced VAT on cigarettes from 50 per cent to 25 per cent.
Ranbaxy Lab was the top Nifty loser, down 3 per cent after quarterly profits dipped 90 per cent.
Global cues:
Japan's Nikkei average hit its highest close in nearly five years on Wednesday as better-than-expected trade data from China boosted sentiment further after a record Wall Street finish overnight.
The Dow closed above 15,000 for the first time on Tuesday. The U.S. stock market's gains so far have come on strong corporate results and accommodative monetary policies from the Federal Reserve, two factors that may now be priced into markets. Last week's jobs report was unexpectedly strong and helped to drive stocks' advance.
(With inputs from Reuters)
