Sensex ends above 25k mark for first time, Nifty at high

Sensex ends above 25k mark for first time, Nifty at high

The Sensex closed above the 25,000 level and the Nifty index ended at a new high on Thursday powered by metal, power and oil & gas shares on hopes of a quick revival in domestic economy, amid strong expectations the European Central Bank will unveil a stimulus shortly.

Buying was strong with 11 of 12 sectoral indices posting gains between 0.17 per cent and 3.33 per cent. Metal, oil&gas, power, FMCG, IT and capital goods led the surge. Persistent capital inflows from foreign funds into equity market and widespread buying by retail investors boosted the market sentiment, said traders.

India's services sector expanded for the first time in nearly a year during May on rebound in new business orders. Foreign Institutional Investors bought shares worth a net Rs 192.56 crore yesterday, as per provisional data.

The BSE Sensex resumed higher, but dropped to a low of 24,644.88. It recovered sharply to settle at its new closing high of 25,019.51, a rise of 213.68 points or 0.86 per cent. It breached previous closing peak of 24,858.59 hit on June 3.

The NSE 50-share Nifty also flared up by 71.85 points, or 0.97 per cent, to end at new peak of 7,474.10 -- surpassing its June 3 closing of 7,415.85. There is growing speculation that the European Central Bank (ECB) will ease monetary policy later today to support a fragile recovery, said traders.

Metal and oil&gas prices usually go up after an economic stimulus on hopes some funds will come into such assets. Sensex-based counters like Tata Motors, Sesa Sterlite, ONGC, Infosys, HUL, RIL, ITC, Tata Steel, Hindalco, TCS, HDFC and Wipro closed with sharp to marked gains.

Banking stocks had a forgettable day as shares like ICICI and HDFC saw profit-taking. "We may see Sensex levels at 30,000 before budget," said Motilal Oswal, CMD, Motilal Oswal Financial Services.

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