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Our Bureau

Mumbai, June 4 The Sensex on Thursday closed above the 15,000-level for the first time in nine months as the new UPA Government indicated that divestment of public sector companies was on the cards.

The 30-share index closed at 15,008.68, or 0.90 per cent higher than on Wednesday. The broader Nifty rose 0.93 per cent, closing at 4,572.65.

The BSE Midcap index rose 2.26 per cent and the small cap index gained 2.2 per cent, both outperforming the Sensex.

Though the Sensexopened with a negative gap of 116 points tracking the Asian markets, they picked up following the President’s comments on the economy, with the positive European markets providing further impetus.

“The agenda of the new UPA Government to revive the economy by allowing increased investment into infrastructure sector and other stressed sectors pepped up the market,” said Mr Alex Mathew, Head of Research at Geojit BNP Paribas Financial.

The sectoral indices that gained the most during the day were realty, capital goods, health-care and power. Metal, consumer durables and IT were among the losing sectoral indices. FIIs were net buyers of equity worth Rs 465 crore on Thursday while DIIs sold for Rs 530 crore in the net.

From its lows of October 2008 the Sensex has more than doubled, and surged close to 50 per cent in the last two months. “In the run-up to the elections and after the results, the sentiment in the market has changed. Fundamentals have been long forgotten and this has been a liquidity-driven rally. A one-way movement like this might end up in an unhealthy bubble”, said Mr Jagannadham Thunuguntla, Equity Head at SMC Capitals.

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