PM's remarks enliven markets, Sensex up 461pts

Singh clears air on economic agenda

The BSE benchmark Sensex on Tuesday posted its second biggest gain of over 460 points since the UPA coalition won the gneral elections, after Prime Minister Manmohan Singh’s optimistic economic growth estimates enlivened the markets.

The markets witnessed wild swings as the bellwether index had opened particularly weak before Singh’s remarks on economic growth sparked an immediate, hectic buying interest which saw the Sensex surging by 461.08 points or 3.14 per cent to close the day at 15,127.00 points. Markets were weak in early trade on media reports that the Government may defer a proposal to decontrol fuel pricing because of a rise in crude rates, and an a likely opposition to disinvestment plans from DMK.

Fresh interest

But Singh’s remarks on economic growth injected a fresh dose of interest among funds who turned aggressive buyers. Winding up a debate in Parliament, Singh said India with its could grow eight to nine per cent despite global slowdown. The 50-share NSE also rose by 121.05 points or 2.73 per cent to end at 4,550.95.

This is the second biggest gain in markets since the UPA Government came back to power. Earlier on May 27, the Sensex jumped over 520 points.As buying was across counters, all sectoral indices on BSE ended in the green. Realty index was the biggest gainer at 6.25 per cent. IT index was next best performer after realty at 4.79 per cent. Metal index was up  4.28 per cent and consumer durables 4.18 per cent.

The total market breadth turned positive with 1,494 counters ending with gains while 1,290 ending with losses.

The total market turnover rose to Rs 8,002.02 crores from Rs 7,357.83 crore on Monday. Tata Steel topped the list of highest traded securities with a turnover of Rs 634.79 crore.