Sensex up 68 pts on growth prospects, easing oil price concern

PTI | | Updated on: Feb 25, 2011

In a highly volatile trade, Sensex on Friday gained over 68 points to close at 17,700.91 on fresh buying in blue-chips at lower levels amid the Economic Survey projecting strong economic growth.

The upturn was bolstered by a firm tend in the Asian region and higher openings in Europe on easing of crude oil prices, after the producing countries said they would boost output in case the Middle East turmoil hits supplies.

Besides, the Railway Budget this afternoon unveiled plans for adding new railway lines — a positive for infrastructure.

The gains were led by stocks in the financial, FMGC and auto sectors.

The Bombay Stock Exchange benchmark index Sensex shuttled between the day’s high of 17,812.44 and a low of 17,469.97, before ending 68.50 points up at 17,700.91.

In a similar fashion, the broad-based National Stock Exchange index Nifty rose 40.85 points to 5,303.55, after moving between 5,338.20 and 5,232.75.

Trading sentiment improved as the Survey, tabled in the Parliament, said the economy would to grow at 9 per cent in 2011—12, from the projected 8.6 per cent this fiscal.

It also said the government is working on series of steps to overhaul market regulations to better safe-guard the financial sector.

Among the 30 index components, 13 stocks closed with gains while 17 ended lower. The most—heaviest Reliance Industries was up on favourable corporate reports.

Brokers cautioned, however, that investor confidence has still not recovered completely as the unrest in Libya and Middle East continued. Also, back home, worries persist on inflation and current account deficit, they added.

Blue-chip stocks of SBI, ICICI Bank, Tata Motors, Hero Honda, ITC, Jindal Steel, Tata Steel and Bharti Airtel gained.

The FMCG sector index gained the most by 2.20 per cent to 3,285.67, followed by banking index, which was up 1.86 per cent to 11,832.23. The auto sector rose by 0.75 per cent to 8,251.04 and consumer durable index by 0.52 per cent to 5,631.01.

On the other hand, shares in IT, capital goods, teck, power and refinery segments declined.

Published on February 25, 2011
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