Sensex up 467 pts, close to 3-yr high

Sensex up 467 pts, close to 3-yr high

Key benchmark indices surged on the last trading day of the week on speculation the 16-day partial US government shutdown this month will curb economic growth in the world's biggest economy and lead the Federal Reserve to maintain monetary stimulus to the US economy into 2014.

The BSE Sensex rose 467.38 points or 2.29 per cent to 20,882.89, its highest closing level since November 4, 2010. The 50-unit CNX Nifty was up 143.50 points, or 2.37 per cent to 6,189.35, its highest closing level since November 11, 2010.

Metal stocks hailed China data with Tata Steel, Sesa Sterlite, Jindal Steel and Power, JSW Steel and Hindalco adding between 1-5 percent on the BSE. China is the world's largest consumer of copper and aluminum.

Market sentiment was also buoyed after state life insurer LIC Chairman S K Roy told a television channel on Friday that it will invest Rs 40,000 crore in domestic equities in fiscal 2014.

Banks were among the leading gainers, sending the NSE bank index up 3.95 per cent. It fell 17.2 per cent in the September quarter. ICICI Bank jumped 4.6 per cent, while HDFC Bank rose 3.4 per cent and Housing Development Finance Corporation rose 3.1 per cent.

Kotak Securities' Dipen Shah said:  “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.

Benchmark indices gained nearly 1 per cent for the week, largely on the back of Friday’s gains....The other trigger for the markets will be the Fed policy meeting and RBI policy meeting at the end of the month.”

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