Midsession: Sensex touches 16,000 level; sets new 2009 high

Midsession: Sensex touches 16,000 level; sets new 2009 high
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First Published: Mon, Sep 07 2009. 03 01 PM IST
Updated: Mon, Sep 07 2009. 03 01 PM IST
Mumbai: Indian shares extended gains to 2% in late trade on Monday, touching 16,000 mark and setting new high for 2009. Markets tracked firmer global peers and positive company announcements.
At 3:09pm the 30-share BSE index up 2.03% at 16,007.25 points, with 28 components gaining. The 50-share NSE index was up 2.2% at 4,784.35.
ICICI Bank and leading telecoms firm Bharti Airtel, which is in merger talks South Africa’s MTN, led the gainers.
By 12:37pm, the 30-share BSE index was up 1.05% at 15,853.58 points, with 27 stocks gaining, after falling 1.5% last week. The 50-share NSE index was up 1.3% at 4,741.50.
Tata Steel, the world’s No. 8 steelmaker by output, rose 1.7% to Rs437.35 as August steel sales at its Indian operations rose 25% from a year earlier to 492,000 tonnes.
Indian Oil Corp firmed 7.5% to Rs663, after the state-run refiner said late on Friday its board would consider a bonus issue on 13 September.
ICICI rose 2.4% to Rs761.50% and Bharti was up 3.2% at Rs419.40.
State explorer Oil India’s initial public offer to raise up to $570 million was fully subscribed within 30 minutes of opening on Monday, three banking sources said, indicating investor appetite remained strong.
Analysts said despite a late revival in the rains, worries remained about farm output.
“The market will stay divided between optimism and pessimism and we could see rangebound trade until Diwali,” said Sanjeev Patkar, director of research at Dolat Capital, referring to the festival lights in mid-October.
“Currently, monsoon is a bit of a worry. Agricultural output is lower but at the same time, food stocks are decent. So, it is a wait and watch situation,” he said.
The BSE index has risen around 65% this year, but fell on four days in a row last week before pulling back a little on Friday.
Brokerage Prabhudas Lilladher said it was bullish on the long-term outlook and set a 12-month target of 19,000 for the index.
“In our view, the Indian equity market is one amongst very few markets around the world to look poised to advance on a long-term bull phase over the next several years,” strategists Carlos Asilis and Darshan Bhatt said in a note on Friday.
State-run oil marketing companies gained after oil prices fell 6.5% last week and traded little changed above $68 a barrel. Bharat Petroleum Corp and Hindustan Petroleum Corp rose 6 and 5.6% respectively.
In the broader market, gainers led losers by four-to-one on relatively good volume of 277 million shares.
In the region, Japan’s Nikkei gained 1.3%, while MSCI’s measure of other Asian markets was up 1.2%.
The US Labour Department said on Friday the unemployment rate rose to 9.7%, though the decline in payrolls was the smallest in a year at 216,000.
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First Published: Mon, Sep 07 2009. 03 01 PM IST
More Topics: India | Markets | Stocks | BSE | NSE |