Markets bounce back, Sensex closes above 15k

Markets bounce back, Sensex closes above 15k
The Financial Express, July 24, 2009, Page 5

fe Bureaus, Mumbai

Indian equity indices bounced back after Monday’s losses as huge inflows from foreign institutional investors (FIIs) to the tune of Rs 955 crore and comments made by Prime Minister Manmohan Singh that India can achieve a growth of 8% with a high savings rate boosted the sentiments of the markets.

The 30-share Sensex of Bombay Stock Exchange (BSE) added 461.08 points, or 3.14%, to close the day at 15,127 points. The broader S&P CNX Nifty of National Stock Exchange (NSE) surged by 121.05 points, or 2.73%, to end at 4,550.95 points.

The domestic markets started the day on a negative note but made a decent recovery following huge inflows from the foreign as well as Indian fund houses, which led the markets marching forward till the final closing of the session. This apart, fresh buying in realty, capital goods and IT sector stocks also gained.

Deven Choksey, MD of KR Choksey Securities, said, “The markets have been witnessing inflows after every dip. On Tuesday, money came in the markets. The money that is lying on the sidelines is coming in whenever there is a correction and this will continue in the near term. Upward rally may continue in the coming days also, and we might witness Nifty trading at the range of 4,660-4,750 points.”

Dealers and brokers said that markets are hopeful that the government will reveal market-friendly measures in the budget next month.

An analyst from a leading broking house said, “There are chances that, once the budget gets over we might witness more overseas funds coming in India. But till then there are chances that market might remain volatile.”

Provisional figures provided by BSE showed FIIs were net buyers at Rs 955.31 crore, while domestic institutional investors (DIIs) were net sellers at Rs 143.21 crore. In June, FIIs have been on the buying side as they have bought stocks worth Rs 2,317.31 crore, while DIIs have sold stock worth Rs 2,597.44 crore.

“The rally was mostly driven by large-cap stocks and mid-cap stocks as slowly sentiments are improving in the market. However we also witnessed some profit-booking from the insurance companies during the intra-day trade on Tuesday,” said Anita Gandhi, head of institutional business at Arihant Capital market.

IT sectors stocks were in demand for the second straight day with Infosys, Wipro, HCL Tech, Tech Mahindra and TCS leading in front. IT has been one of the beaten down sectors due to rupee getting stronger. Rupee was down at 47.51 to the dollar on Tuesday from 47.55 on Monday.

All of BSE sectoral indices closed the day in green with Realty and IT being the top gains of the day. Out of 2,826 traded on BSE, 1,494 stocks advanced, 1290 stocks declined while 42 stocks remained unchanged. Among Sensex pack, 28 stocks closed in green and two closed the day in red.