Noon: Markets rise by 1% on strong Asia

Noon: Markets rise by 1% on strong Asia
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First Published: Wed, Jul 15 2009. 03 01 PM IST
Updated: Wed, Jul 15 2009. 03 01 PM IST
Mumbai: The Bombay Stock Exchange benchmark Sensex on Wednesday surged nearly 262 points on aggressive buying by funds and investors, on news of good quarter-earnings by blue-chip stocks.
The Sensex, which surged 453 points in the previous day’s trading, shot up further by 261.83 points at 14,115.53 at 2:20pm.
Similarly, the wide-based National Stock Exchange index spurted 83.30 points at 4,194.70 at the same time.
Last week, the market fell 9.4% - its biggest weekly fall in eight months - after the government’s budget disappointed investors who were expecting bold economic and financial reforms.
“The market is still finding it difficult to attract liquidity, and in the absence of any domestic triggers, there is still downside risk even though we are up now due to international markets,” Agrawal said.
Traders also said the market was facing technical resistance, with index charts pointing to more downside for the market in the near term.
However, the benchmark index is set to gain another 12% by the end of 2009, taking its rise for the year to 60%, as an economic revival boosts corporate earnings and attracts liquidity, a Reuters poll shows.
Larsen rose 1.9% to Rs1,398.90, while Reliance Industries, which has the most weight in the main index, climbed 0.7% to Rs1,823.
Bharti Airtel, which is in exclusive merger talks with South Africa’s MTN, advanced 2% to Rs788.95.
Consumer-goods maker Hindustan Unilever shed 1.3% to Rs265.85, while rival ITC eased 1% to Rs210.30.
Top car maker Maruti Suzuki fell 0.1% to Rs1,087.25 and leading utility vehicle maker Mahindra & Mahindra also slid 0.1% to Rs703.85.
In the broader market, gainers led losers by almost 3 to 1 on relatively light volume of 105.2 million shares.
Asian shares were higher, with Japan’s Nikkei up 0.1%, while MSCI’s measure of other Asian markets rose 2%.
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First Published: Wed, Jul 15 2009. 03 01 PM IST
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