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Midsession: Sensex rises 3%, touches 11,000 level

Midsession: Sensex rises 3%, touches 11,000 level
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First Published: Fri, Apr 17 2009. 11 40 AM IST
Updated: Fri, Apr 17 2009. 11 40 AM IST
Mumbai: Indian shares rose more than 3% on Friday, as brightening signs the global economic malaise was fading lifted investor confidence and boosted markets worldwide.
Top lenders such as State Bank of India, ICICI Bank and HDFC Bank led the rally after US bank JPMorgan Chase & Co beat forecasts with its quarterly profit, easing concerns about the world financial sector.
Diversified engineering and construction firm Larsen & Toubro and IT-services exporter Infosys Technologies were among the other major advancers.
By 11:23am, the 30-share BSE index was up 3.1% at 11,288.69 points, with 28 stocks advancing and the 50-share NSE index was up 3.2 % at 3,478 points.
The benchmark had shed 3% on Thursday as investors booked profits after it jumped 18 percent over the previous eight trading sessions.
“The JPMorgan results were definitely a boost to the market. Also, the credit crisis seems to be over. If Unitech is able to raise more than $300 million, that means there are not much funding concerns any more. This has really turned sentiment,” TS Harihar, senior vice president at ICICI Securities, said.
Property firm Unitech Ltd has raised $325 million, through a placement of shares with institutional investors, to repay a part of its debt, media reports said on Friday, citing unnamed sources. The stock was up 12.1% at Rs48.60.
However, analysts believe the market is overbought and could see some consolidation in the near term.
“I still see the market trend going downward in the near term,” Harihar said, adding a clearer picture will emerge only after national elections are completed.
Month-long general elections got underway on Thursday, with signs that an unstable coalition may emerge in the middle of an economic slowdown.
Still, State Bank of India, the country’s top lender, gained 6.5% to Rs1,344 while smaller rivals ICICI Bank rose 5.1% to Rs448.25 and HDFC Bank climbed 2.4% to Rs1,090.
No. 2 outsourcer Infosys recovered 5.1% to Rs1,409.90, after sliding almost 55 over the past two days following a weak outlook forecast by the company. Larsen and Toubro jumped 5.8% to Rs879.65.
Reliance Industries, which has the most weight in the main index, rose 1.7% to Rs1,765.80. The stock had lost 4.9% on Thursday after having jumped by a fifth since 30 March.
In the broader section, advancers led losers in the ratio of 3:1 on light volume of 163.4 million shares.
Asian shares were up after a Wall Street rally overnight, with Japan’s Nikkei up 1.8% and MSCI’s measure of other Asian markets rising 0.3%.
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First Published: Fri, Apr 17 2009. 11 40 AM IST
More Topics: India | Stocks | BSE | NSE | Sensex |