FII buying, global cues, reform announcements by new government drove the rally
The Sensex surged about 184 points to end at a new closing high of 25,580.21 and the Nifty jumped over 71 points to settle at its all-time closing peak of 7,654.60.
Heavy FII inflows and positive global cues drove the market rally. Apart from this, the domestic sentiment was buoyed as the government began its tenure with a promise to roll out a slew of economic reforms and big-bang policy initiatives to usher the economy into a high growth path.
Marketmen were keeping on eye on international trade, industrial production and consumer inflation this week.
Barring oil & gas, all other BSE sectoral indices ended significantly in the green. Among them, realty index gained the most by 5.61 per cent, followed by capital goods 2.33 per cent, power 2.15 per cent and consumer durables 1.82 per cent. Only oil & gas index was down 0.36 per cent.
Bajaj Auto, Coal India, L&T, Tata Power and Tata Steel were the top five Sensex gainers, while the top five losers were ONGC, HUL, SBI, Axis Bank and Infosys.
Rajesh Agarwal of Eastern Financiers in a report said: “Markets are expected to see some profit-booking next week after this week’s rally. Overall the investors' sentiment is expected to remain positive as all are hopeful of an economic turnaround. While the process of returning Asia’s third largest economy back on the high growth trajectory is bound to be an extremely challenging task for the new Government, most investors now seem to believe that the worst seems to be over and the major sectors of the economy seem to be looking up.”
Meanwhile, Foreign Institutional Investors (FIIs) bought shares worth Rs 1,283.04 crore last Friday, as per provisional data from the stock exchanges.
European stocks jumped, extending a six-year high, amid optimism the global economic recovery remains on track.
Asian stocks climbed, with the regional index headed for a seven-month high, after US payrolls, Chinese exports and Japanese economic growth beat estimates.