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Close: Markets gain for 7th straight day; Sensex up 0.9%

Close: Markets gain for 7th straight day; Sensex up 0.9%
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First Published: Fri, Aug 28 2009. 06 15 PM IST
Updated: Fri, Aug 28 2009. 06 15 PM IST
Mumbai: Indian shares rose 0.90% on Friday, gaining for a seventh day in a row for the first time in four-and-a-half months, as equity markets worldwide were boosted by a view the global economy was on the road to a sustainable recovery.
The main index extended gains to 4.5% for the week as it posted its strongest finish since 3 August, when it had closed at a 14-month high.
Energy giant Reliance Industries rose 1.5% to Rs2,070.30 and state-run explorer Oil and Natural Gas Corp gained 0.3% to Rs1,179.20 as oil prices rose above $73 a barrel.
Top telecom firm Bharti Airtel, which is in exclusive talks for a tie-up with South Africa’s MTN, rose 4.4% to Rs434.80, its best close in more than three months.
MTN wants to conclude the talks with Bharti quickly to end any doubt about the deal, but doesn’t rule out interest in part of Kuwaiti firm Zain.
Top realty firm DLF, which climbed 5.3% to Rs413.15, and private-sector lender ICICI Bank, which advanced 1.7% to Rs763.65, were the other major gainers.
The 30-share BSE index Sensex ended up 141.27 points at 15,922.34, having survived an early dip into negative territory as investors took profits on its run of gains.
“The underlying economic conditions in countries around the world are certainly improving, so I am not surprised that liquidity is chasing stocks once again,” Deven Choksey, chief executive of K.R. Choksey Shares & Securities, said.
The index is now up 1.9% in August, having been down more than 6% earlier in the month on worries about a weak monsoon, high valuations and looming inflation.
In the broader market, gainers led losers 1,544 to 1,257 on relatively heavy volume of 530.4 million shares.
The 50-share NSE index rose 0.9% to 4,732.35, its highest close in almost 15 months.
“For the time being, liquidity remains supportive of equity markets,” Morgan Stanley analyst Ridham Desai said.
Having priced in a global upturn, investors are looking for more signs global growth can be sustained once the impact of massive government stimulus spending fades, traders say.
There are also worries stocks may have moved ahead of economic fundamentals and could be due for a correction.
“To the extent that excess money will decline in the coming months as growth accelerates, the pace of equity gains could also slow,” Desai said.
Asian shares rose on Friday. Japan’s Nikkei gained 0.6% and MSCI’s measure of other Asian markets was up 1%.
At 1044 GMT, the FTSEurofirst 300 index of top European shares was up 1.3%.
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First Published: Fri, Aug 28 2009. 06 15 PM IST
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