Sensex on a bull run, up 169 pts

Last Updated: Sat, Dec 01, 2012 06:21 hrs

The BSE Sensex ended higher for a fourth day in a row after weak gross domestic product (GDP) data raised hopes of some monetary easing at the next central bank meeting on December 18.

The economy extended its long slump in the quarter ending in September, with lower-than-expected growth at 5.3 per cent keeping it on track for its worst year in a decade.

Markets will closely track the vote on foreign investment in multi-brand retail in Parliament and manufacturing PMI for November next week. Market participants say stocks could extend gains if the vote goes in favour of the government.

“It really depends on the Parliament vote. If it goes through, there will be a boost to confidence. If it doesn't, it may indicate less aggression on reforms from the government,” said Sonam Udasi, head of research at IDBI Capital.

The BSE Sensex ended 0.88 per cent, or 168.99 points higher at 19,339.90, its highest close since April 27, 2011, gaining 4.5 per cent for the week. For the month the BSE Sensex rose 4.51 per cent; the Nifty added 4.63 per cent. The 50-share NSE index gained 0.94 per cent, or 54.85 points, to 5,879.85, its highest close since April 21, 2011, also adding 4.5 per cent for the week.

Both posted their best weekly gains since the week ending June 8, on rising expectations of reform and measures to contain India's twin deficit and FII inflow, along with Moody's stable outlook on India and after Goldman Sachs upgraded Indian equities.

State Bank of India rose 1.8 per cent and Punjab National Bank gained 2.37 per cent, after data showed farming output grew 1.2 per cent in the September quarter, as both banks have substantial farm loan exposure.

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