Mumbai: The BSE Sensex rose strongly to its highest in five months on Monday, led by Reliance Industries and financial stocks on growing hopes the global economic downturn could be nearing its bottom.
Reliance, India’s most valuable listed firm, was up 1.8%, taking its gains in April to more than 11%, after it started pumping natural gas last week from its massive deep-sea field in the Bay of Bengal.
“I think globally there is lot of liquidity coming to the emerging markets. The G-20 meet has been quite positive,” said Amitabh Chakraborty, president of equities at Religare Capital.
Japan’s Nikkei was up 0.9% and MSCI’s measure of other Asian markets had risen 2.2%.
Chakraborty also expected companies to report better-than expected fourth-quarter results, with the season getting into swing on 15 April when IT bellwether Infosys Technologies reports.
“There would be losses on year-on-year basis. But, it will be less than anticipated in the beginning of the quarter,” he said of the broad outlook for results.
At 11:18am, the 30-share BSE index was up 1.73% at 10,527.49 points, with 24 components rising. The 50-share NSE index was up 1.66% at 3,264.45.
In opening deals, the market rose 2.96% to 10,654.89, its highest since 5 November.
Chakraborty said banking stocks were up on improving expectations for results and hopes the central bank would cut interest rates at its policy review on 21 April.
Mortgage lender Housing Development Finance Corp rose 4.7% to Rs1,657.05 and top private lender ICICI Bank was up 3.4% at Rs372.50.
In the broader market, gainers led losers by more than three to one, on low volume of 125 million.