Sensex zooms 650 pts to 23,000 as FIIs pour money into banking, infra stocks

The BSE Sensex zoomed past the 23,000-mark for first time, to hit a new record, on Friday as foreign investors pumped money into stocks that could benefit that the Narendra Modi-led Bharatiya Janata Party wins the election that is set to conclude next week.

Foreign institutional investors (FIIs) bought shares worth Rs363.24 crore yesterday, as per provisional data from the stock exchanges.

The Sensex, which briefly crossed the 23,000-mark for the first time at around 3.30 pm, send blue-chips such as ICICI Bank sharply higher.

Core sector shares such as Ambuja Cement surged, while the Bank Nifty on the National Stock Exchange hit a record high on hopes that a new government would frame policies that would further relax foreign investment limit in these sectors.

The Sensex rallied over 650 points or 2.91 per cent and was standing at 22,994.23 at the close of the afternoon session on Friday.

The National Stock Exchange index CNX Nifty was up 198.95 points or 2.99 per cent at 6,858.80 at the close of trading.

On the NSE, IDFC shares gained the most, rising 8.25 per cent to Rs117.45 while 1,58,59,582 shares changed hands during the day. The ICICI Bank stock rose 7.21 per cent to Rs1,382 with a total of 62,59,002 shares changing hands. Ambuja Cement rose 6.76 per cent to Rs206 while 22,39,453 shares changed hands. Axis bank was up 6.19 per cent at Rs1,650 with total volume of 22,65,473 shares. Tata Power gained 5.70 per cent at Rs80.65 with traded volume of 45,19,272 shares

The rally was led by banking, realty, capital goods and oil & gas sector stocks despite weak global cues.

Market sentiment was buoyed by heavy capital inflows on hopes of the new government at the centre turning more market-friendly after the ongoing general elections.

Barring healthcare, all other BSE sectoral indices were trading in the green. Hindalco, Coal India, Maruti, HDFC and ICICI Bank were the top five Sensex gainers, while the only two losers were Dr Reddy's and Sun Pharma.

Global sentiment, however, was dampened as investors remained cautious due to tense situation in Ukraine.

US stocks mostly ended lower on Thursday. But European shares rose 1.1 per cent on prospects of ECB action next month to spur the euro zone economy.

European stock-index futures were little changed, after the Stoxx Europe 600 Index climbed yesterday to its highest level in more than six years.

US index futures and Asian shares were also little changed.