Sensex surges 400 points, hits new record high on poll results; Rupee at 4-month high

Mumbai: The Sensex and Nifty today surged to new lifetime highs on all-round buying after the BJP swept three out of 4 state polls and boosted hopes that a new government in 2014 general elections would be more business-friendly.

The BSE Sensex ended at closing high of 21,326.42 with a gain of 329.89 points or 1.57 per cent while the NSE CNX Nifty closed at 6,363.90 points, a hefty rise of 104.00 points or 1.66 per cent.

Across markets, 5 out of every ten stocks rose. This helped investor wealth soar by about Rs 75,000 crore. Besides BJP's strong performance in Assembly polls in four states, sustained capital inflows and a firming trend in the global markets also helped markets cement gains.

The rupee too surged to its highest level in nearly four months in intra-day trade and fell back to close with a 28 paise gain at 61.13 against the dollar today, boosted by stocks that climbed to a record after BJP won three out of four state assembly elections.

Support for the rupee also came as foreign investors continued to buy local stocks and exporters sold dollars. At the interbank foreign exchange market, the rupee commenced sharply higher at 60.90 a dollar from the previous close of 61.41 and immediately touched 60.84, a four-month high, on the back of a strong rally in local stocks.

The gains were trimmed and the local currency dropped to the day's low of 61.21 on dollar demand from importers before closing at 61.13, a two-month high. Bankers and exporters preferred to reduce their dollar position as the equity market soared on strong performance of BJP in Assembly polls.

The rupee resumed higher at 60.90 per dollar as against the last weekend's level of 61.41 at the Interbank Foreign Exchange (Forex) Market.

Ahead of Lok Sabha polls, BJP on Sunday handed a severe 4-0 drubbing to Congress in polls in which it snatched Rajasthan and retained Madhya Pradesh with landslide wins, holding on to power in Chhattisgarh and good show in Delhi. 

Earlier during the day, the BSE Sensex and the NSE Nifty soared to hit new all-time high of 21,483.74 and 6,415.25 points, respectively, on sustained fund inflows after the BJP's spectacular performance in assembly elections amid a firming overseas trend.

The 30-share index, which had gained 287.82 points in the previous two sessions, zoomed to hit an all-time high of 21,483.74 by surging 487.21 points, or 2.32 per cent.

All the sectoral indices, led by banking and capital goods, were trading in positive territory with gains up to 3.68 per cent. The 50-share NSE Nifty also recorded its all-time high of 6,415.25, surpassing the previous closing high of 6,357.10 registered on January 8, 2008.

Brokers said frenzied buying by funds and retail investors after BJP's good show in Assembly elections buoyed the trading sentiments. Besides, a firming trend on other Asian bourses following Friday's gains in the US market after jobs data, too generated buying by funds.

In the Asian region, Japan's Nikkei rose 1.85 per cent, while Hong Kong's Hang Seng rose 0.37 per cent in early trade on Monday. The US Dow Jones Industrial Average closed 1.26 per cent higher on Friday. 

Rupee hits 4-month high, up 51 paise against dollar

Extending its rising streak for the fourth straight day, the rupee appreciated by 51 paise to trade at nearly four-month high of 60.90 against the dollar in early trade on Monday on sales of the US currency by banks and exporters and sustained foreign capital inflows.

Besides, a higher opening in the domestic equity market, where the Sensex soared to an all-time high of 21,483.74 points after BJP's victory in state Assembly elections and strengthening of other currencies against the dollar overseas, also supported the local currency, forex dealers said.

The rupee had gained 34 paise to close at five-week high of 61.41 against the dollar on Friday.