Sensex surges to 2-week high on earning concerns
In a curtailed session on account of technical glitches, the Bombay Stock Exchange (BSE) benchmark Sensex today surged to two-week high by adding 323 points on impressive corporate earnings and firm global cues.business Updated: Nov 01, 2010 16:57 IST
In a curtailed session on account of technical glitches, the Bombay Stock Exchange (BSE) benchmark Sensex today surged to two-week high by adding 323 points on impressive corporate earnings and firm global cues.
The Sensex spurted by 323.29 points to 20,355.63, the highest level since October 14, influenced by a higher quarter earning by most-weighted Reliance Industries and biggest private lender ICICI Bank. The trading halted on the BSE for 150-minutes between 1200 to 1430 hrs because of technical snags.
The broad-based National Stock Exchange index Nifty shot up by 99.85 points to 6,117.55 in un-interrupted trading as stocks in consumer durable, banking and realty sectors recorded handsome gains.
The banking stocks were in demand ahead of the Reserve Bank of India's monitory policy on Tuesday, while consumer durable stocks were up on expectations of higher earnings on rising sale for the festival season led by Diwali.
The trading sentiment was bolstered as Reliance Industries climbed to its highest in more than six months, after posting the best quarterly earnings since 2007, as growing fuel demand boosted refining profits and natural gas production gained.
However, the RIL stocks fell to close lower by 2.70 to Rs 1,093.10 as profit-selling emerged in last 30-minutes once trading resumed after a halt. The stock climbed to a high of Rs 1,187 after recording 28 per cent surge in net income for three months ended September 30.
Higher earnings by the biggest private lender ICICI Bank on Friday and Sun Pharma this afternoon remained supporting factor for the market.
Sun Pharmaceutical Industries, the biggest drugmaker by market value, gained to a record after its profit climbed 12 per cent on higher demand for generic medicines. National Aluminium, the second-biggest producer of the metal, advanced 0.9 per cent after it posted a 41 per cent increase in net income. Mahindra & Mahindra Ltd., the largest maker of sport-utility vehicles and tractors, rose to the highest after sales climbed in October.
A firming trend in the Asian region and higher opening in Europe also supported the uptrend. The Asian stocks advanced after China’s manufacturing expanded at the fastest pace in six months.
In the 30-BSE index components, 26 stocks closed with gains while four ended in negative zone. The stocks of ICICI Bank, HDFC Bank, HDFC Ltd., DLF Ltd, ACC and Larsen and Toubro were star performer.
Analysts said that trading sentiment turned better after Mukesh Ambani-led Reliance Industries reported a 27.80 per cent growth in its consolidated net profit at Rs 4,923 crore for the second quarter ended September 30, 2010.
Stocks of Reliance Industries shot up by nearly 2.5 per cent to Rs 1,125.
Meanwhile, in other markets in Asia, the Hong Kong's Hang Seng index was up by 2.08 per cent, while the Japan's Nikkei shed 0.18 per cent in the morning trade today.