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| Sensex rises 2.88% on FM pep talk, global cues |
| BS Reporter / Mumbai Jul 16, 2009, 00:33 IST |
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Intel, Goldman Sachs results help improve sentiment.
Stock market indices surged for the second consecutive day on the back of Finance Minister Pranab Mukherjee’s statement that the economic stimulus was showing intended results. Also, better-than-expected results from Intel and Goldman Sachs and rise in metals prices improved sentiments.
The Bombay Stock Exchange Sensitive Index, or Sensex, surged 399.54 points or 2.88 per cent to close at 14,253.24, thereby recovering 6.36 per cent during the week. Last week, it fell by 9.45 per cent. The S&P CNX Nifty added 122.10 points or 2.97 per cent to 4,233.50.
The BSE Mid-cap and Small-cap indices outperformed the broader market. The former added 4.15 per cent to 4,978.64, while the latter gained 4.56 per cent to 5,523.80.
“The market responded positively to the long-term investment plan mentioned in the Finance Minister’s Budget. Today’s sharp rise signalled a secular and core buying support,” said Rajesh Jain, CEO, Pranav Securities.
Asian markets ended with big gains, buoyed by good sentiments in the international markets. The Straits Times and Jakarta Composite rallied 3.41 per cent and 3.24 per cent, respectively. The Hang Seng was up 2.09 per cent.
US markets closed flat yesterday after good results from Goldman Sachs and Intel. Both the Nasdaq and the Dow Jones closed up by 0.36 and 0.33 per cent, respectively.
The market breadth was positive with 3,164 stocks closing in the green, just 697 fell and 103 remained unchanged.
All the BSE sectoral indices were in the green, led by yesterday's top gainer - realty index. The index soared 7.98 per cent. Metal (5.67 per cent), power (4.77 per cent) and capital goods (4.72 per cent) were the other top gainers among indices.
Jaiprakash Associates and DLF gained 7.74 per cent and 7.18 per cent, respectively. Sensex heavy-weight Reliance added 3.52 per cent to Rs 1,875.
Rating agency Moody's said today that though there had been capital inflows into the stock market, it expected “India to record gradual recovery in foreign direct investments in the coming months, especially since the Indian authorities were keen to promote public-private partnerships in supporting growth initiatives.”
Sterlite Industries, the nation's biggest copper producer, rose 4.2 per cent to Rs 629.5. Tata Steel added 6.5 per cent to Rs 380.9. Hindalco jumped 8.2 per cent to Rs 79.6.
Copper rallied to a two-week high in Shanghai on speculation that demand for the metal in China may accelerate as the country's economy strengthens. Copper for October delivery on the Shanghai Futures Exchange rose 2.3 per cent to 40,600 yen ($5,942) per tonne, extending yesterday's 2.1 per cent advance. Three-month delivery copper on the London Metal Exchange jumped for a third day, adding 0.5 per cent to $5,068 a tonne.
A measure of six metals traded on the London Metals Exchange, comprising copper, aluminum, lead, tin, zinc and nickel, leapt 3.4 per cent yesterday.
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