It rains gains at Dalal Street; BSE Sensex vaults 373 points
Expectations of strong first quarter corporate results, upward revision in India's GDP growth forecast by the International Monetary Fund (IMF) and revival of monsoon pushed up the BSE-benchmark Sensex sharply by 373 points in the week.business Updated: Jul 10, 2010 14:35 IST
Expectations of strong first quarter corporate results, upward revision in India's GDP growth forecast by the International Monetary Fund (IMF) and revival of monsoon pushed up the BSE-benchmark Sensex sharply by 373 points in the week.
The IMF raised India's growth forecast for 2010 to 9.5 per cent, stating that favourable financing conditions and robust corporate profits will accelerate economic expansion. The IMF expects India's economy to grow by 8.5 per cent in 2011.
Asian and European stocks firmed up tracking gains on Wall Street, which was boosted by jobless claims falling and a handful of large retailers reporting solid sales.
Renewed buying in view of market regulator SEBI's decision to reduce exposure margins for stocks derivatives also boosted the market sentiment.
Investors are also closely watching progress of the monsoon rains, crucial for Indian agriculture. The weather office said monsoon has advanced into key grain-producing states of Punjab and Haryana and is forecast to move further.
Robust growth in industrial production, stabilising domestic consumption-demand, rapidly-growing investment demand coupled with increase in imports and exports seem to have supported the growing investor confidence.
The BSE Sensex shot up by 372.59 points, or 2.13 per cent, to end the week at 17,833.54 from the last weekend's close after moving in a wide range of 17,857.58 and 17,395.58.