Sensex back on 15,000 track

Sensex back on 15,000 track
The Financial Express, July 21, 2009, Page 4

fe Bureau, Mumbai

Indian equity indices closed the day with huge gains, following strong cues from global markets coupled with inflows from the foreign institutional investors (FII).

News of $3 billion rescue from bondholders for US lender CIT Group also boosted sentiments of domestic markets. 30-share Sensex of Bombay Stock Exchange (BSE) added 446.09 points or 3.03% to end the day at 15,191.01 points. Broader S&P CNX Nifty of National Stock Exchange (NSE) closed higher by 127.30 points or 2.91% to 4,502.25 points.

There was huge buying in technology stocks during intra-day trade, possibly because of positive earnings announced by TCS. Additionally, short covering was also seen in domestic markets. Raamdeo Agrawal, MD of Motilal Oswal securities said, “Globally, huge inflows are entering emerging markets as growth is visible here. Apart from that, quarter earnings have been better then expected.”

Domestic markets opened on positive note led by strong cues from Asian and European markets. Markets remained in an upbeat mood and closed the day ‘above the dotted line’. Deven Choksey, MD of KR Choksey Securities said, “Lot of FII money is coming in and this is one reason Indian markets are surging ahead. I don’t see any downward rally in the near term, unless there is negative news from global markets. This upward rally is likely to continue in the coming days.”

Per provisional figures furnished by BSE, FII were net buyers at Rs 563.20 crores and domestic institutional investors (DII) bought stock worth Rs 151.85 crores on Monday. The breadth of the market remained strong as out of 2,741 stocks traded on BSE, 1,837 stocks advanced, 832 stocks declined while 72 remained unchanged. In Sensex 23 stocks closed in green while remaining seven stocks closed the day in red. Liquidity conditions have improved in the domestic markets in the last few trading sessions. Apart from that, monsoon will also play crucial part in the markets. Barring FMCG, whose stocks have mostly been in the green, all sectors in BSE sectoral indices closed the day above the dotted line on Monday and IT and realty stocks were the best performers.

“Now markets, during the next few trading sessions, will look at companies’ quarter earnings coupled with government measures to boost economy as well as inflows from FIIs,” said an analyst.