Sensex surges 838.08 pts on FM's assurance

{image-sensex, big_23072008.jpg news.oneindia.in}Mumbai, Jul 23: The Sensex zoomed up by 838.08 points on the Bombay Stock Exchange to close at 14,942.28 and Nifty gained 236.70 points to end at 4,476.80 after the UPA government won the trust vote and assurance by Union Finance Minister P Chidambaram today that government would push ahead the economic reforms also boosted market sentiments.

The benchmark index of BSE smartly opened with a positive gap of 464 points at 14,568.22 from its previous close of 14,104.20 and further extended the gains to touch an intraday high at 14,979.90, surged 875.70 in the late trade on sustained buying interest after the Congress-led United Progressive Alliance Government won the trust vote, ending fears over the political uncertainty.

The Nifty index of National Stock Exchange climbed a day's high of 4,491.55, gaining 251.45 points form its previous close of 4,240.10, before finally ending the session, notching 236.70 points at 4,476.80 in late trade.

Market pared strong gains as political stability at the centre could pave the way for key economic reforms. Firm global cues and sliding crude oil prices also boosted the sentiments, brokers said.

SBI Mutual Fund Chief Investment Officer Sanjay Sinha said that ''after the end of political uncertainty, the short-term market trend would be decided on the basis of global market sentiments as well as oil prices, whereas long-term trends mostly depend on the proposed economic reforms taking shape''.

Banking, realty and power sector shares posted a strong surge after the finance minister's assurance. Mr Chidambaram today said that the government would now push ahead with unfinished economic reforms that would include drafting new legislation in insurance and banking sectors and creating a pension regulatory body.

Anil Dhirubhai Ambani controlled Reliance Natural Resources's shares rose by 22.71 per cent to close at Rs 90.25 on huge volumes.

UNI