PSU bank lifts India’s Sensex

Index passes 33,000 points but volatility and profit bookings at the end of the weekly trade capped gains

Expectations of faster economic growth on the back of the recently announced recapitalisation measures for state-run banks lifted the key Indian equity indices for the fourth straight week and led the 30-scrip Sensex to close above the 33,000 mark.

Other factors such as prospects of additional liquidity, healthy buying in blue chip stocks, along with hopes of better quarterly results aided in the key indices upward trajectory.

However, volatility and profit bookings that emerged at the end of the weekly trade capped gains.

On a weekly basis, the 30-scrip Sensitive Index (Sensex) edged higher by 572.87 points or 1.75 per cent to 33,157.22.

Similarly, the wider 50-scrip Nifty of the National Stock Exchange (NSE) made gains. It rose by 112.2 points or 1.09 per cent to close at 10,323.05.

The S&P BSE Sensex touched a record new intraday highs of 33,286.51, while the broader NSE Nifty50 breached 10,366.15 mark.

“Domestic markets soared to lifetime highs on broadly positive global cues despite the fact earnings of the corporates are yet to show any meaningful recovery,” D.K. Aggarwal, Chairman and Managing Director of SMC Investments and Advisors, said.

“The bull’s got the strength after the announcement of the bank recapitalisation plan by the government to address the issue of inadequate lending and approval of the proposal for Bharatmala Pariyojana phase-I along with other programmes.”

Harsha Upadhyaya, Chief Investment Officer — Equity, Kotak Mutual Fund, said: “While it was all about lights and fireworks during Diwali week, it was all about recapitalisation bazooka for ailing PSU banks this week.”

Even the domestic political cues supported the Indian indices northward movement.

“Early opinion polls placed the Bharatiya Janata Party (BJP) in the driving seat in both Gujarat and Himachal Pradesh. This enhanced investors’ risk-taking appetite,” Dhruv Desai, Director and Chief Operating Officer of Tradebulls, said.