Home Companies Industry Politics Money Opinion LoungeMultimedia Science Education Sports TechnologyConsumerSpecialsMint on Sunday

Close: Sensex rallies on strong global cues; ends 0.6% up

Close: Sensex rallies on strong global cues; ends 0.6% up
Comment E-mail Print Share
First Published: Tue, Sep 08 2009. 05 17 PM IST
Updated: Tue, Sep 08 2009. 05 17 PM IST
Mumbai: Indian shares rose for a third session on Tuesday and helped double the gains in the main index from a 2009 low in March, as emerging markets climbed to a year high on growing global investor confidence.
Signs of industry revival and expectations for strong quarterly earnings underpinned the market, but traders said fatigue could set in and there was talk prices may have risen too fast.
The 30-share BSE index rose 0.67% or 107.35 points, to 16,123.67 - its highest close since 30 May, 2008, with half its constituents gaining. The 50-share NSE index climbed 0.5% at 4,805.25.
The benchmark has gained 67% so far this year and has more than doubled from its March low of 8,047.17.
Amitabh Chakraborty, president of equities at Religare Capital, said a correction of 5-10% by the end of October could be possible.
“In March, when we had touched lows, there were no expectations. So, every positive news surprised the market,” he said. “Now, there are a lot of expectations and it is difficult to surprise the market positively.”
The market’s strong rally despite worries an erratic monsoon will slow down economic growth is causing unease.
“The concern is we are just rising too soon, too fast,” said Nilesh Doshi, president of equity research at Techno Shares and Stocks. “Fundamentally, we are overstretched at current levels.”
State Bank of India chairman said earnings at the country’s largest lender was seen rising 30-35% in the current quarter, with retail loans growing at about twice the pace from the year earlier.
Its shares closed 4.4% higher at Rs1,894.15. The domestic industry is showing signs of revival and foreign investors are also returning, a junior finance minister said on Tuesday.
Metal producers climbed, supported by strong base metals and steel prices in global markets, dealers said.
Tata Steel, Sterlite Industries and Hindalco Industries rose between 3.2% and 6.1%.
Engineering and construction firm Larsen & Toubro firmed 1.3% to Rs1,617.50. Its financial services unit is in talks to buy Cholamandalam DBS Finance’s domestic mutual fund operation, sources told Reuters late on Monday.
Cholamandalam DBS was up 9.9% at Rs69.65.
Energy giant Reliance Industries, which has the most weight in the main index, rose 3.7% to Rs2,075.15.
Tata Consultancy Services closed 0.7% higher at Rs553.80, extending gains from the previous day after the top software services firm’s CEO said on Monday its demand pipeline was good.
In the broader market, 1,472 losers outpaced 1,370 gainers on heavy volume of 573 million shares.
Comment E-mail Print Share
First Published: Tue, Sep 08 2009. 05 17 PM IST
More Topics: India | BSE | NSE | Markets | Sensex |