Sensex surges 500 points; banking, capital goods stocks rally

Mumbai, May 9 (IANS) A benchmark index of Indian equities markets surged more than 500 points Friday on growing optimism that Narendra Modi-led Bharatiya Janata Party (BJP) would be able to form a stable government post general election that ends next week.

The 30-scrip Sensitive Index (Sensex) of the S&P Bombay Stock Exchange (BSE), which opened at 22,374.98 points, was trading at 22,851.05 points in the afternoon session, up 507.01 points or 2.27 percent from the previous day's close at 22,344.04 points.

The Sensex touched a high of 22,862.17 points and a low of 22,317.18 points in trade.

The rally was led by the banking, capital goods, oil and gas, auto and metal sectors, while marginal selling pressure was seen in healthcare sector.

The prominent gainers are: HDFC Bank, up 3.19 percent at Rs.742; ICICI Bank, up 3.98 percent at Rs.1,340.70; Coal India, up 4.23 percent at Rs.306.60 and Reliance Industries Ltd, up 3.06 percent at Rs.989.05.

The S&P BSE bankex gained 463.61 points, capital goods surged by 309.60 points, oil and gas index moved up by 258.80 points, metal index got augmented by 270.43 points and auto index went up by 280.09 points. However, healthcare index slipped by 24.98 points.

The wider 50-scrip Nifty of the National Stock Exchange (NSE) also gained 151.15 points or 2.27 percent and was trading at 6,811 points.