Active Stocks
Thu Mar 28 2024 15:59:33
  1. Tata Steel share price
  2. 155.90 2.00%
  1. ICICI Bank share price
  2. 1,095.75 1.08%
  1. HDFC Bank share price
  2. 1,448.20 0.52%
  1. ITC share price
  2. 428.55 0.13%
  1. Power Grid Corporation Of India share price
  2. 277.05 2.21%
Business News/ Money / Robust earnings outlook, global cues lift Sensex
BackBack

Robust earnings outlook, global cues lift Sensex

Robust earnings outlook, global cues lift Sensex

Premium

Mumbai: Encouraging global picture and robust corporate earnings outlook for the fiscal year 2010, propelled Indian bourses aiding the Bombay Stock Exchange 30-share benchmark, Sensex, to hit a 13-month high of 15,670.31 amid end of quarterly earnings season.

The BSE barometer gained 1,176 points or 8.0% in July quarterly earning season.

The major trigger was the better-than-expected financial results by majority of companies.

Extending weekly gains to third straight week to 1 August, the BSE bellwether concluded at levels not seen since 17 June 2008, netting a rise of 291.35 points or 1.89% over its last weekend’s close.

Similarly, the National Stock Exchange broader 50-share Nifty jumped 67.90 points or 1.49% to end the week at 4,636.45 from its previous weekend’s close.

Even as the market was influence by a flow of encouraging corporate earnings, the Reserve Bank of India’s quarterly monetary policy review announced on 28 July also impacted the market.

The RBI left the key rates unchanged and increased the inflation forecast to 5% in this fiscal. It also raised the growth projections at 6.0% in 2009-10.

Meantime, finance minister Pranab Mukherjee on the same day announced tax breaks, mainly beneficial to infrastructure sector in a bid to stimulate the economy.

FII activity during the month too was encouraging with a total capital inflow of over Rs11,000 crore in July.

Analysts also are optimistic about corporate earnings in the current fiscal year.

However, the monsoon remained a main cause of concern as the total rainfall since the beginning of June was below average according to the Meteorological Department.

During the week, the trading volume on the BSE was almost steady at Rs33,007 crore against last week’s turnover of Rs34,005 crore but it crossed 1 lakh mark on the NSE to Rs1,07,707 crore from Rs99,330 crore in the previous week.

The midcap and smallcap indices again outperformed the Sensex with a rise of 3.52% and 2.57% over the week.

The BSE FMCG Index was the week’s top gainer with a jump of 6.14% followed by the BSE IT Index (4.85%) and BSE Realty Index (3.12%).

The domestic bourses were well supported by global markets, which hit a multi-month high on revival in economy across the world as well as encouraging corporate earnings.

Among the major gainers, Tata Motors soared by 12.86%, Tata Power by 11.02%, TCS Ltd by 9.25%, ITC by 7.97%, SBI and Wipro by 6.80% each and Tata Steel by 5.18%.

Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!

Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
More Less
Published: 01 Aug 2009, 12:46 PM IST
Next Story footLogo
Recommended For You
Switch to the Mint app for fast and personalized news - Get App