Sensex shoots up 306 points on new ULIP guidelines

Investors look at the BSE Sensex in Mumbai. File photo

Investors look at the BSE Sensex in Mumbai. File photo  

The Bombay Stock Exchange benchmark Sensex shot up by 306 points to a two-month high on Monday as investors responded positively to the government sorting out the dispute over regulation of ULIPs.

The market was also bolstered to a great extent by surging global bourses after China announced steps to let its currency, the yuan, gain against the US dollar.

The Sensex surged by 305.73 points to 17,876.55, a level last seen on April 9, after the government resolved the dispute between market regulator SEBI and IRDA over who had jurisdiction over hybrid ULIPs in favour of the insurance watchdog. ULIPS are life insurance products, a part of which are invested in equities.

The green signal for life insurers to continue offering unit-linked plans resulted in substantial inflows into the market.

The broad-based National Stock Exchange index Nifty rose by 90.70 points to 5,353.30, after touching the day’s high of 5,366.75 points.

In the 30-index components, 28 stocks closed higher, while Bharti Airtel and HDFC Bank ended with losses.

Metal, realty and finance company stocks gained the most, as investors felt the improvement in economic growth would boost demand for infrastructure and funds.

Sterlite Industries, the biggest copper and zinc producer, gained the most in a year after its shares were split, making them cheaper to trade, and metal prices rallied.

Sterlite Industries gained 8.28 per cent to Rs. 183.70, Tata Steel by 6.30 per cent to Rs. 504.30, Sesa Goa by 9.54 per cent to Rs. 387.60 and Hindalco by 5.61 per cent to Rs. 153.45.

A firming trend in the Asian region and a higher opening in Europe this afternoon further bolstered the investor sentiment.

Larsen and Toubro, a well diversified company, surged 2.12 per cent on the Sensex to Rs. 1,836.35 on reports that the company plans to double sales from its electrical and electronics division by 2015.

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Printable version | Jul 7, 2020 1:35:11 PM |

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