Sensex mirrors IIP data, rises 384 pts
Double-digit growth in index of industrial production (IIP) after 22 months brought cheer to the market as the Sensex at Bombay Stock Exchange (BSE) rose by 2.3 per cent to close at 17,026.business Updated: Oct 12, 2009 20:47 IST
Double-digit growth in index of industrial production (IIP) after 22 months brought cheer to the market as the Sensex at Bombay Stock Exchange (BSE) rose by 2.3 per cent to close at 17,026.
The wider Nifty at National Stock Exchange rose by 2.2 per cent to close at 5,054.
Market movement on Monday was in line with the IIP numbers that grew by 10.4 per cent for the month of August. The consumer durables segment that saw a real growth (reflected in IIP) of 22.3 per cent also emerged as the top gainer among the sectoral indices at BSE with a rise of 3.7 per cent.
“Strong IIP numbers resulted in the rally at the markets as the IIP numbers were above market expectations, especially the numbers for consumer durables sector was very good,” said Alex Mathews, head of research, Geojit BNP Paribas Financial Services.
Blue Star, that has a weightage of 24 per cent in the consumer durable index at BSE gained 6.6 per cent while Rajesh Exports was up 9.4 per cent.
The mining sector reflected a growth of 12.9 per cent in the IIP; the metal index shot up 2 per cent during the day on the BSE. The scrip of mining company Sesa Goa rose 4.1 per cent.
The strong opening of the European markets also helped. “There is a growing confidence in the developed nations of a stable recovery,” said DD Sharma, vice president research, Anand Rathi Financial Services. “There was also support from the reconciliation initiated by one of the Ambani brothers.”
Shares in both Mukesh and Anil Ambani group companies traded strongly on Monday. Reliance Infra was up 5 per cent, RIL 3.2 per cent, Reliance Capital 5.3 per cent and Reliance Power 2.6 per cent respectively.