Sensex surges to two-year high of 17,711 points

The Bombay Stock benchmark Sensex rose to its highest in two years today, adding over 66 points on fund-based buying in heavy-weight stocks led by banks, following the government’s approval for several big ticket foreign investments.

Continuing the four-day upward march, the Sensex shot up to 17,793.01 points before closing at 17,711.35, its highest since February 21, 2008.

The wide-based National Stock Exchange index Nifty rose by 20.85 points to 5,302.85, after touching the day’s high of 5,329.55.

Trading sentiments got a fillip following reports that the government had approved foreign direct investment in 23 companies, raising expectations that the economic growth was on the right track.

The government today approved 23 FDI proposals worth over Rs 2,325.21 crore, including that of broadband services provider Tikona Digital Network and auto components maker Bharat Forge.

Shrugging off the recent hike in interest rate, the market remained aggressive in buying stocks finance and banking sector stocks.

In the 30 share BSE index, 21 closed with gains while nine ended in the negative zone.