M A I N   N E W S

Dalal Street celebrates, for the time being
Sanjeev Sharma/TNS

The US booster Analysts said the US debt ceiling issue has boosted the markets Better than expected financial results of large companies and improvement in the rupee have also helped market sentiment Foreign investors pumped in Rs 1,109.93 crore into local equities on Thursday. FIIs have infused $14.77 billion so far since January this year

New Delhi, October 18
The stock markets rose by over 467 points to a nearly three-year high owing to improved sentiment on the debt agreement in the United States and expectations that the tapering would happen at a later date.

The benchmark BSE Sensex was up by 467 points or 2.29 per cent to 20,882 points, its highest closing level since November 9, 2010. Investors on the exchange were richer by over Rs 1.07 lakh crore.

Though the stock markets are nearing the lifetime highs, the euphoria is absent as the market rally has been narrow and concentrated in a few large cap stocks which make up the indices. Few sectors like financials, banks, consumer staples, consumer discretionary and export oriented ones like pharma and IT have been doing well. The market rally has been FII led and retail investors and domestic funds have been redeeming at every level.

In a recent report, Crisil had pointed out that while the index seems to be holding up to 2008 levels, it is less reflective of the economy and does not seem to convey the worsening macro-economic situation. “The answer lies in the changing dominance and outperformance by a few sectors such as consumer staples, consumer discretionary, private sector financials and export-orientated sectors such as IT and pharma”.

Foreign investors pumped in Rs 1,109.93 crore into local equities on Thursday, remaining net buyers for the 10th straight day. FIIs have infused $14.77 billion so far since January this year.

Analysts said the US debt ceiling issue has boosted the markets. Dipen Shah, Head of Private Client Group Research, Kotak Securities said the markets rose sharply on Friday buoyed by the postponement of the debt ceiling issue and on likely expectations that the Fed will not taper the stimulus program in its next meeting, pending final resolution of the debt ceiling program.