Sensex above 29K, Nifty tops 8800 level after SBI results boost

Friday, Feb 13, 2015,19:35 IST By metrovaartha A A A

Mumbai | The benchmark Sensex gained 289.83 points to reclaim 29,000 mark and Nifty jumped 94 points to end above 8,800 level today on stellar SBI earnings, rising hopes of a pro-growth budget and positive global cues. Logging their fourth successive session of gains, benchmark indices wrapped up the week in style after ending in the red for the preceding two weeks.
Shares of FMCG, healthcare, banking, auto and metal sectors were the major gainers of the day. Country’s largest public sector lender SBI today reported over 30 per cent jump in net profit December quarter. Its shares zoomed nearly 8 per cent, adding about 86 points alone to Sensex’s 289.83 point surge.
The BSE Sensex resumed higher at 28,888.99 and shot up further to 29,154.67 before ending at 29,094.93, showing a gain of 289.83 points or 1.01 per cent. Besides SBI, major contributors to the index’s gain include TCS, ITC, M&M and ICIC Bank, HDFC and Sun Pharma.
The Sensex has now gained 867.54 points, or 3.07 per cent, in four days. Similarly, the CNX 50-share Nifty rose by 93.95 points, or 1.08 per cent, to close at 8,805.50. Supporting global cues, cease-fire in Ukraine and expectations of pro-growth budget, helped markets overcome the results of the Delhi assembly elections. Better-than-expected numbers from SBI, M&M also helped sentiments and so also the lower-than-expected CPI numbers, said Kotak Securities, Head- Private Client Group Research, Dipen Shah.
On the macro front, the rate of inflation based on the consumer price index (CPI) accelerated to 5.11 per cent in January 2015 but was well within RBI’s target while slowing IIP growth in December 2014 has made the case stronger for more monetary easing this year. In the overseas markets, European stocks were trading higher, boosted by the signs that the Eurozone economy may be recovering and hopes that Greece is closer to an overhaul of its bailout.
Meanwhile, Foreign Portfolio Investors sold shares worth a net Rs 406.28 crore yesterday as per provisional data while Domestic Institutional Investors bought shares worth a net Rs 705.53 crore.