Market update: Sensex spurts over 380 points to near four-week high

The benchmark Bombay Stock Exchange (BSE) index Sensex on Friday soared by 380 points, logging its sixth successive session of gains, to a near four-week high boosted by gains in banking stocks on hopes of much-awaited sectoral reforms and encouraging manufacturing output data for December.

The broader 50-share National Stock Exchange (NSE) index Nifty crossed the 8,400-level before ending at 8,395.45 with a gain of 111.45 points (or 1.35 per cent).

Shares of public sector (or PSU) and private sector banks saw heavy buying.

The 30-issue BSE barometer resumed higher at 27,521.28 and surged to 27,937.47 before ending at 27,887.90, with a sharp gain of 380.36 points (or 1.38 per cent). This is the strongest closing in the Sensex in nearly four weeks.

The gauge has now gained over 679.29 points in six straight days. On a weekly basis, it climbed 646 points.

Among scrips of banking and financials firms in Sensex, counters like HDFC, ICICI Bank, HDFC Bank, Axis Bank and SBI rose. Bank of Baroda, Bank of India, Bank of Maharashtra and United Bank of India gained among PSU banks outside the index.

Besides banking, capital goods, IT, power, teck and realty counters too attracted good buying support. This was after an HSBC survey said that the country's manufacturing sector grew at its fastest pace in two years in December on strong orders flows from domestic buyers as well from abroad.

"The significant improvement in HSBC Manufacturing Purchasing Managers' Index (PMI) provided the initial push," said Religare Securities, President-retail distribution, Jayant Manglik, adding that hopes that fiscal position of the government is likely to improve during January-March quarter also encouraged sentiments.

Also, senior bankers, insurers, financial sector regulators and finance ministry officials are attending 'Gyan Sangam', a two-day meet at Pune from Friday (Jan 2), to deliberate on a host of issues including M&As and bad assets to revitalise the banking sector.

Meanwhile, foreign Portfolio Investors (FPIs) bought shares worth a Rs 18.20 crore on Thursday, according to provisional data available with domestic bourses.