Midsession: Sensex rises 490 pts on increased fund inflow

Midsession: Sensex rises 490 pts on increased fund inflow
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First Published: Fri, Jul 17 2009. 02 28 PM IST
Updated: Fri, Jul 17 2009. 02 28 PM IST
Mumbai: The Bombay Stock Exchange benchmark Sensex on Friday surged over 490 points at midsession on increased capital inflows from funds on the back of encouraging quarterly results by domestic blue-chip companies and firming trends overseas.
The 30-share index rose 490.881 points, or 3.44% at 14,741.06 at 1:30pm, as funds indulged in buying heavyweight stocks led by Reliance Industries.
The 50-share National Stock Exchange index Nifty moved up by 147.75 points to 4,379.15 points.
Buying was widespread as all the sectoral and Sensex-related shares traded higher. Firming European markets in opening trade today further fuelled the uptrend.
Markets rose 2.1% in the morning as upbeat earnings reports from key US firms fuelled a Wall Street rally overnight and lifted sentiment across Asia.
Private-sector lender ICICI Bank, outsourcer Infosys Technologies and top telecoms firm Bharti Airtel led the gains, putting the market on course for a weekly gain after it dropped 9.4% last week.
“We are seeing overseas markets going up, while in India, first-quarter results have been good so far,” said Amitabh Chakraborty, president of equities at Religare Securities. “Fund flows coming into the market have been quite positive.”
Last week, the benchmark posted its biggest weekly fall in eight months, after the government’s budget offered little in terms of bold economic and financial reforms, but set a huge deficit of 6.8% of GDP, the highest in 16 years.
There are still concerns about rich valuations and uncertainty surrounding the domestic economy and corporate earnings growth, but the momentum in overseas markets is spurring the benchmark higher, traders said.
Equities worldwide have rallied this week as strong US corporate earnings, and encouraging economic data from China and Singapore signalled the turmoil in the global economy was abating.
But on Thursday, Indian shares retreated from gains of as much as 1.7% after a poor start for European peers sparked profit-booking on a 6.4% jump in the market over the previous two sessions.
“One should not be too bullish about the market now,” Chakraborty said. “It’s time to be a little cautious.”
ICICI Bank rose 3.5% to Rs719.35, while No. 2 outsourcer Infosys climbed 3.1% to Rs1,850.50.
Bharti, which is in exclusive merger talks with South Africa’s MTN, advanced 4.9% to Rs824.
In the broader market, gainers led losers by more than 2.5 to 1 on relatively light volume of 104.6 million shares.
Asian shares were higher on Friday, with Japan’s Nikkei up 0.5%, while MSCI’s measure of other Asian markets rose 0.7%.
US stocks rallied for a fourth day on Thursday after JPMorgan’s strong results fed growing optimism about the quarterly earnings season and technology shares rose in anticipation of more good news.
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First Published: Fri, Jul 17 2009. 02 28 PM IST
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