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India’s Sensex crosses 18,000 level

NEW DELHI - India’s benchmark Sensex stock index on Tuesday broke the 18,000 level for the first time, registering the highest-ever intra-day gains in the bourse’s history on sustained buying from domestic and foreign institutional investors.

The 30-share Bombay Stock Exchange index gained 788.85 points or 4.51 per cent and close the day’s trade at 18,280.24. It was the second-fastest 1,000-point rally in nine trading sessions. The fastest 1,000-point journey was achieved in six trading sessions when the Sensex rallied from 16,000 to 17,000 points in September.

Earlier, it took as many as 53 sessions to move from 15,000 to 16,000 and 147 days from 14,000 to 15,000. The Sensex had touched the five-figure level of 10,000 in February 2006.

The broader 50-stock S&P/CNX Nifty Index on the National Stock Exchange also rose by 242.15 points to 5327.25, constituting a rise of 4.76 per cent.

The bullish charge came on the back of buying by funds and expectations of robust quarterly earnings.

Market analysts also attributed Tuesday’s impressive gains to the easing of a political stand-off between the ruling United Progressive Alliance (UPA) and its communist partners over the nuclear agreement with United States.

Talks between the UPA and its left-wing partners on the issue were described as “positive” and the next round of talks was scheduled for October 22.

“The rally was driven by strong buying the IT and Oil and Gas stocks fuelled by the strong expectations for quarterly earnings which will kickstart from October 11,” a broker told the PTI news agency.

Consistently rising dollar inflows from foreign institutional investors in 2007 have helped the Sensex reach milestones in relatively short timeframes.

Investments during 2007 by foreign funds surpassed 11 billion dollars and broke the previous high of 10.8 billion dollars during the whole of 2006.