Musings: Sensex, Nifty touch 16-month high

written by indianachu at Wednesday, September 16, 2009

MUMBAI: The benchmark Sensex on Wednesday surged by 222 points to close at a new 16-month high after hectic buying in metal and auto stocks by overseas funds on cues from firm global equity markets.

Buying in last few minutes pushed up the 30-share index to close higher by 222.59 points at 16,677.04, a level not seen since May 22, 2008 when it was ended at 16,907.11.

The BSE barometer moved in a narrow range in positive terrain till the fag end.

The wide 50-issue Nifty of the National Stock Exchange rose by 66.30 points to close at 16-month peak of 4,958.40 points.

Brokers said a host of positive news and sustained portfolio inflows amid firm global markets mainly boosted the trading sentiment.

Foreign institutional investors, the main market driver, pumped in Rs 4,415.70 crore in the last seven sessions.

Most of the Asian markets closed higher up to 2.6% on encouraging rise in US retail sales in August and hopes of global economic recovery after the US Federal Reserve Chairman, Ben S Bernanke, said the worst US recession since the 1930s has probably ended.

The Reserve Bank saying on Tuesday that it would not signal a hike in interest rates till the economic recovery is on a strong footing also supported the market.