Sensex up 173 pts; investor confidence high ahead of Q1 Nos | business | Hindustan Times
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Sensex up 173 pts; investor confidence high ahead of Q1 Nos

business Updated: Jul 06, 2010 18:24 IST

The BSE benchmark Sensex today surged by over 170 points on hopes that the world's second largest growing economy would get a boost with the monsoon covering the entire country.

Marketmen said the investor sentiment also got a fillip after bourses across the world recovered from recent losses.

China's Shanghai index with a 1.92 per cent jump led the rally in Asia as investors bought shares available at low levels, analysts said.

European bourses also opened in the green, further bolstering the investor confidence, leading to a fag-end rush for financial and IT stocks.

The 30-share Sensex of the Bombay Stock Exchange finally ended the session at 17,614.48, up 173.04 points, or 0.99 per cent, to snap three days of straight losses. The National Stock Exchange's Nifty added 1.02 per cent to end at 5,289.05 points.

The key indices in China, Hong Kong, Singapore, Taiwan, Japan and South Korea rose in the range of 0.57 per cent to 1.92 per cent.

Buying was also sparked by usual high expectations that the first quarter earnings of India Inc would not disappoint the markets. The Q1 numbers would start trickling in from the second week of July 2010.

The progressing monsoon have intensified hopes of a bumper crop. The weather office said monsoon rains have advanced into the country's key grain-producing states of
Punjab and Haryana and is forecast to progress further.

"Investors are feeling comfort on the progress of the monsoon, and a bumper harvesting is expected in the country.

Firm world cues and hopes of robust first quarter performance lifted the market sentiment," Unicon Financial CEO Gajendra Nagpal said.

Hectic buying was witnessed on almost all the fronts and metal, consumer durables, banking and IT stocks were the major gainers.

Metal stocks gained following an overnight rise in metal prices on the London Metal Exchange and a recovery in the Chinese markets.

Jindal Steel was up 2.16 per cent, Tata Steel 1.77 per cent, Sterlite Ind 1.56 per cent and Hindalco 1.52 per cent.

IT stocks rose on bargain hunting after a recent slide triggered by weak US economic data. The US is the biggest market for Indian IT firms. IT bellwether Infosys moved up
1.59 per cent, TCS 2.45 per cent and Wipro 1.60 per cent.

Banking stocks rose for the second day with ICICI Bank jumping 2.12 per cent, SBI 1.78 per cent, HDFC Bank 2.41 per cent HDFC 0.13 per cent.