BSE Sensex surges 319 pts to new closing peak; SBI shares soar 10 pct

May 23 2014, 19:08 IST
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Reliance Communications surges 5 percent. (PTI) Reliance Communications surges 5 percent. (PTI)
SummaryBSE Sensex boosted by big spike in State Bank of India shares.

The benchmark BSE Sensex surged 319 points, clocking its biggest rise in over a week, to end at a new closing peak of 24,693.35 today boosted by a spike in State Bank of India (SBI) after its earnings and heavy buying in power shares on hopes of a big push under the incoming Narendra Modi-led government.

Likewise, the NSE barometer Nifty jumped 90.70 points, or 1.25 per cent, to close at a yet another record of 7,367.10, surpassing its previous high of 7,276.40 hit on Thursday.

State Bank of India shares hit a 3-year high and closed about 10 per cent higher after analysts said its 8 per cent decline in profit for fourth quarter was better than expected.

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.

RIL, ONGC, L&T and HDFC were among the 22 winners in 30-share Sensex.

The 30-share Sensex opened on a strong footing and rose to day's high of 24,745.86 points. It concluded the session at 24,693.35, a new record at closing, by rising 318.95 points or 1.31 per cent. It surpassed previous record closing of 24,376.88 reached on May 20.

Financial major Goldman Sachs said 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.

The rupee surged to trade at fresh 11-month high of 58.37 in late afternoon trade. It had closed at 58.47 yesterday.

"With the sea change in the trading sentiments, investors were seen accumulating small and mid-cap stocks," said Manoj Choraria, a Delhi-based stock broker.

The BSE Midcap index ended 1.76 per cent higher at 8,668.32 points and the small-cap barometer rose 1.87 per cent to end at 9,128.04.

Overall, the BSE PSU index emerged the star performer by rising the most at 3.87 per cent, followed by Power sector index (3.66 per cent), Oil and Gas index (2.16 per cent) and Capital goods index (2.15 per cent).

Dipen Shah, Head of Private Client Group Research, Kotak Securities: Markets continued to remain buoyant during the week, following the

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