Biggest Single-Day Rise Of 789 Points Helps It Rocket Past 18K
Raging bulls on Dalal Street set many new records today. For one, the BSE sensex turned 18. Call it a coming of age of sorts; the index closed at 18,280, up 789 points for the first time. This was the fastest the sensex has ever moved up in a single day. Second, investors were richer by a record Rs 2.11 lakh crore in just about six hours of trading on Tuesday.
Viewed in percentage terms, the sensex moved up 4.5%. This percentage rise, however, pales when compared with what happened in March 1992. That was when the sensex moved up 13.1% in a single day on the back of a frenzy fuelled by Harshad Mehta. It must also be quickly mentioned that of the five largest gains the sensex has made in a single day, four have happened in 2007.
The day also witnessed FII inflows for 2007 crossing the $15 billion mark with a record $838 million coming in on a single-day.
The main drivers for Tuesday’s rally were not expectations of strong economic and corporate growth that have weaned foreign fund managers into the country. It was political news that the Left parties are not withdrawing support yet to the ruling coalition at the centre. ‘‘Although the meeting of the UPA alliance was only postponed to October 22, everybody in the market is buying as if there is no tommo row,’’ said a top broking house official. FACTORS 1 Buying by foreign funds as the Indian rupee appreciated against the dollar, projections of strong economic growth and expectations of robust corporate earnings 2 Possibilities of immediate mid-term general elections slimmed after Tuesday's meeting of UPA members 3 Strong positive news flows from frontline companies
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