Putting behind a weak profit growth in quarterly results unveiled by India Inc for the April-June quarter, stocks are surging ahead. The third straight session of rise on Wednesday saw the 30-share sensitive index (Sensex) of the Bombay Stock Exchange and the National Stock Exchange’s Nifty close at 30-monthly highs as investors seemed to bet on strong economic growth ahead.
The Sensex rose 102 points or 0.5 per cent to close at 18,217.4 while the Nifty gained 28 points to close at 5,467.9, even as the whole of Europe was trading in the red. The IT sector led the rally and the IT index at the BSE rose by 3.3 per cent as they cheered the strong result and guidance from peer Cognizant Technology Solutions.
The Sensex has gained 776 points or 4.5 per cent over the last one month amidst a strong FII inflow of R16,617 crore in July and R2,582 crore in the first three trading days of August.
“While the domestic factors are strong the concern lies only on the front of global developments,” said R. Venkatraman, executive director, India Infoline.
In the period auto, healthcare and the FMCG sectors have been the biggest gainers with auto index up by 73 per cent.