Despite low GDP (gross domestic product) numbers, the stock indices surged further on Friday, on assurances of the Finance Minister that the Government would set up a National Investment Board (NIB) which would monitor and advise ministries on expediting and implementation of projects.
The Bombay Stock Exchange (BSE) 30-share sensitive index (Sensex) surged by 168.99 points to close at 19339.90. The rally was led by metal stocks which gained 2.07 per cent, power 1.77 per cent, PSUs 1.70 per cent, banks 1.46 per cent and consumer durables 1.40 per cent. However, automobile, FMCG and realty stocks ended in the red. Among broader indices BSE 100 gained 0.96 per cent, BSE-200 was up by 0.94 per cent and BSE 500 also was up by 0.95 per cent.
On the National Stock Exchange, the 50-share Nifty closed at 5879.85 with a gain of 54.85 or 0.94 per cent.
“Indian benchmark indices outperformed most global peers during the week and settled at new calendar year highs. Sensex ended comfortably above the 19000 mark,” said Dipen Shah, Head of Private Client Group Research, Kotak Securities.
The week was capped by one per cent rally on Friday. “An in-line second quarter GDP reading, supportive Asian markets and continuing strength in the rupee helped sentiment. The announcement that the NIB will be set up fast, provided cheer to the beaten down sectors like infrastructure and capital goods. Globally, the passage of the Greek deal and positive comments on the fiscal cliff issue in the US, helped global markets gain,” Mr. Shah added.
Meanwhile the rupee strengthened further against the dollar and closed at 54.26/27 compared to its previous close of 54.83/84.