Mumbai: Equity benchmarks Sensex and Nifty galloped to new closing peaks, logging their best single-day rise in 10 days, boosted by spurt in shares of SBI after earnings and heavy buying in power sector on hopes of a big push under the incoming Narendra Modi-led government.
The indices also logged third straight week of gains. Both Sensex and Nifty have gained 10 per cent in three weeks. The BSE Sensex spurted by 319 points, or 1.31 per cent, to end at a new historic closing high of 24,693.35 supported by buying in banking, refinery, capital goods and auto counters amid firm global markets.
The Sensex surpassed previous record closing of 24,376.88 reached on May 20. The 319-point rise was its best single-day gain since May 13, 2014 when it increased by 320 points.
Similarly, wide-based 50-issue CNX Nifty of NSE flared up by 90.70 points, or 1.25 per cent, to end at new closing peak of 7,367.10. It crossed previous peak of 7,276.40 (May 22).
Country's largest bank SBI, was the top gainer from the Sensex pack with a rise of 9.69 per cent despite decline in the Q4 net profit but asset quality showed signs of improvement. "SBI reported healthy performance on the asset quality front while operating performance came ahead of our estimates," said Angel Broking.
RIL, ONGC, L&T, HDFC, Maruti Suzuki, ICICI Bank, Sesa Sterlite and M&M were among the 22 Sensex gainers. Investors heavily bought into power stocks, including NTPC and Tata Power, on reports that Modi-led NDA government is likely to harness solar power and give a fillip to development of offshore wind energy.
Adani Power, Reliance Power, Power Grid and JP Power also hogged the limelight. Jignesh Chaudhary, Head of Research, Veracity Broking Services said: "Local equities continued to trade strong. It is expected that the new government will form business friendly economic policies which will remove bottlenecks and will eventually help the economy to grow."
A clear mandate for the BJP has rekindled hope for structural reforms and better investment climate and the country's growth is likely to accelerate to 6.5 per cent in FY16, a Goldman Sachs report said.
