Sensex hits all-time high above 16,000

The market opened with a bang, with both the niche indices BSE Sensex and S&P CNX Nifty striking all time high in opening trade. While the BSE Sensex propelled above the 16,100 mark, the S&P CNX Nifty conquered all time high above 4,650

The rally was triggered by the US Federal Reserve announced a 50 basis points cut in fed funds rate to 4.75% from 5.25% on Tuesday, 18 September 2007. Asian markets rallied today, 19 September 2007, after the Fed decision.

At 10:21 IST, the 30-shares BSE Sensex was up 386.64 points or 2.47% to 16,055.76. It opened with a sharp 271.67 point upward gap at 15,940.79 and advanced further to hit an all time high of 16,116.73. It previous all time high was 15,868.85 hit on 24 July 2007.

The S&P CNX Nifty was up 114.80 points or 2.53% to 4,461. It struck an time high of 4,677.70

All the 30-members from Sensex pack advanced.

Bank and financial shares rose on the reckoning that the Fed move could put pressure on RBI to loosen its monetary policy. India’s top private sector mortgage lender in terms of revenue Housing Development Corporation (HDFC) surged 3.85% to Rs 2265. It was the top gainer from Sensex pack.

ICICI Bank (up 2.91% to Rs 952), HDFC Bank (up 3.90% to Rs 1278), and State Bank of India (up 3.65% to Rs 1755.15), edged higher

India’s largest private sector entity by market capitalisation and oil refiner Reliance Industries (RIL) rose 2.33% to Rs 2106.35. It also struck an all time high of Rs 2120. As per recent reports, RIL is foraying in shipbuilding and dredging business with two separate companies. It plans to invest around $1 billion each in two companies and has begun talks with international majors for a strategic tie-up for the dredging business

Meanwhile, the Left-UPA Committee on the nuclear deal will meet for the third time today, 19 September 2007 amid a fresh warning from the CPI(M) against implementing the pact and to keep it on hold for at least six months.

Asian markets surged today, 19 September 2007 tracking overnight gains on Wall Street. Hong Kong's Hang Seng (up 3.58% at 25,455.59), Japan's Nikkei (up 3.18% at 16,304.69), Singapore's Straits Times (up 3.07% at 3,584.55), South Korea's Seoul Composite (up 3.27% at 1,898.86) and Taiwan's Taiwan Weighted (up 1.16% at 9,003.36) surged.

Wall Street shares rallied yesterday, 18 September 2007 after the Federal Reserve cut its benchmark interest rate by a larger-than-expected 0.5%. The Dow Jones industrial average soared 335.97 points, or 2.51%, to 13,739.39. This was its biggest surge since 2 April 2003. The blue-chip index is now only about 1.9% below its record close of 14,000.41, reached in mid-July. The Standard & Poor's 500 index rose 43.13 points, or 2.92%, to 1,519.78. The Nasdaq Composite index gained 70 points, or 2.71%, to 2,651.66.

Crude oil climbed above $82 a barrel on Wednesday, 19 September 2007 near a record reached a day earlier after the US Federal Reserve slashed interest rates to calm worries over economic growth ahead of peak winter fuel demand. US light crude for October delivery rose 82 cents to $82.33 a barrel, after hitting a record of $82.38 yesterday, 18 September 2007. London Brent crude gained 72 cents to trade at $78.31 a barrel.

As per provisional data, foreign institutional investors (FIIs) purchased shares worth a net Rs 23.38 crore, while domestic institutional investors (DIIs) were net sellers of shares worth Rs 232.93 crore on Tuesday, 18 September 2007

The BSE 30-share Sensex advanced up 164.69 points or 1.06% at 15,669.12, on Tuesday 18 September 2007. The S&P CNX Nifty rose 51.55 points or 1.15% at 4,546.20, on that day.