Mumbai: Buoyed by better-than-expected quarterly numbers from India Inc and hopes of a rate cut by the Reserve Bank of India accompanied by more reform measures post deregulation of diesel prices, helped the Sensex close above the psychological 20,000-level for the first time since January 5, 2011.
Sensex closed the day at 20,039, gaining 75.01 points or 0.38 per cent while the Nifty ended the trading session at 6,064.40, up 25.20 points or 0.42 per cent.
“The government appears to be making the right noises in pursuing fiscal consolidation. Should this continue, the current momentum is likely to be sustained. The coming week again has a number of index-heavyweights announcing their numbers. Ride the rally and look at adding some positions in case of a healthy correction,” commented Amar Ambani, head of research, IIFL.
The oil and gas sector extended its rally for the second consecutive day with the BSE Oil&GAS index being the highest gainer among the sectoral indices.
The hike in diesel prices and partial deregulated approach towards future price changes led to massive buying in the oil marketing companies. The share prices of ONGC gained 7.31 per cent while that of Oil India and Indian Oil Corp climbed 8.95 per cent and 10.46 per cent, respectively.
“Markets closed the week on a bullish note and that was well supported by the oil and gas sector stocks. The strengthening rupee against the dollar too added to the overall cheerful mood,” observed Nagji K. Rita, chairman and MD, Inventure Growth and Securities.
While RIL scaled to a 52-week high ahead of its quarterly numbers, which were announced post market hours, the shares of Wipro tanked eight per cent after its Q3 numbers disappointed the street.