Wednesday, April 20, 2011

Sensex spurts 349 points on monsoon forecast, firm global markets

MUMBAI: Across-the-board buying pushed up the BSE Sensex by 349 points on Wednesday to 19,470.98 on heavy capital inflows amid forecast of normal monsoon for this year and firm global markets.

Buying was so robust that all the 13 sectoral indices closed in the green as auto, IT, metal and banking segments made big gains.

Experts said investors chose to ignore a string of negatives like arrests of senior officials of telecom firms in 2G spectrum allocation scam, inflation and high oil prices.

The Bombay Stock Exchange 30-share barometer resumed with upside gap at 19,274.21 and remained in the positive terrain throughout the session to settle at 19,470.98, a net rise of 349.15 points or 1.83 per cent over Tuesday's close.

Similarly, the NSE 50-issue Nifty spurted 110.90 points or 1.93 per cent to 5,851.65.

FIIs, the main market drivers, bought shares worth Rs 1693.19 crore as per the provisional figures, while domestic institutional investors (DIIs) injected Rs 208.33 crore yesterday.

While monsoon forecast lifted investor sentiment, it was bolstered by Asian markets which recorded gains following a rebound on the Wall Street yesterday after strong results from tech bellwether Intel and other US firms.

Key benchmark indices in China, Hong Kong, Japan, Singapore, South Korea and Taiwan closed up between 0.29 per cent and 2.23 per cent.

European markets too displayed a firm trend, tracking gains. The CAC was up by 2.02 per cent, the DAX by 2.26 per cent and the FTSE by 1.85 per cent.

"Good set of numbers declared by HCL tech and Yes Bank also aided the uptrend," said Shanu Goel, senior research analyst (equity) at Bonanza Portfolio.

He said the afternoon session witnessed a volatile movement, as market reacted adversely to 2G scam related news but that was quickly discounted and momentum gained strength as the session progressed.

Market sentiment is likely to be affected by TCS and Reliance results on Thursday, Goel added.

"It was an impressive trading session for the Indian stock market on Wednesday amid strong gains across global equity markets, especially in Europe," said Amar Ambani, Head of Research ( India Private Clients) - IIFL.

In addition, forecast of normal monsoon and strong export growth added to the cheer, Ambani added.

He said that as a result, the news of CBI court rejecting the bail pleas of top telecom honchos didn't make any major dent, barring a brief hiccup in the afternoon session.

toi

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