MUMBAI: The BSE benchmark Sensex surged by over 358 points to settle at all-time closing high of 22,702 after the IMF forecast of 5.4 percent growth in 2014 triggered frenetic buying by FIIs who anticipate market-friendly policies by the new government post-elections. Share brokers said that with a strong GDP forecast, rupee strengthening and inflation being under control, markets could be in the midst of big rallies in the next couple of months. Buying support was so strong that 10 out of 12 sectoral indices settled the day in the positive terrain with banking, metal, pharma, capital goods, realty and auto counters taking the lead.
Only IT and Teck finished in the red ahead of the announcement of fourth quarter earnings Infosys on April 15. The 30-share index ended the day at all-time closing high of 22,702.34, a surge of 358.89 points or 1.61 percent from its previous close, snapping three days of losses. This is the biggest gain for Sensex in the last one month. The best gain previously was on March 7 when Sensex spurted by 405.92 points. An intense fag-end buying by FII pushed the barometer to a fresh record high of 22,740.04 intra-day. The previous all-time high was 22,620.65 logged on April 3 this year. The 50-issue NSE Nifty also flared up by 101.15 points or 1.51 percent to end at new peak of 6,796.20. It has recorded a historic intra-trade high of 6,808.70.
Post its Ranbaxy deal, Sun Pharma soared 6.91 percent to emerge as the biggest Sensex gainer. Among banking shares, Axis Bank rose 4.44 percent), followed by ICICI Bank at 4.18 percent and SBI 3.23 percent and HDFC Bank 2.61 percent. Among big losers Infosys dropped by 1.16 percent. "Sentiments remained up-beat on International Monetary Fund's (IMF) latest outlook that stated that India's growth is expected to recover to 5.4 percent in 2014 supported by slightly stronger global growth, improving export competitiveness and implementation of recently approved investment projects," said Jayant Manglik, President (Retail Distribution), Religare Securities.
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