Business   

BSE index revisits 10000-mark

MUMBAI: The stock markets made a smart recovery and the Bombay Stock Exchange 30-share sensitive index, Sensex, closed above the 10000-mark on Thursday. The benchmark index, which was on a four-day winning streak, added 335.20 points or 3.47 per cent to close at 10003.10, a level last seen on January 5.

The Sensex touched the day’s high of 10061.36 and a low of 9739.93. Buying was led by Consumer goods (up 5.42 per cent), power (4.02 per cent) metal (3.97 per cent) Bankex (3.38 per cent) and IT (3.29 per cent), except the realty sector which lost by 4.54 per cent on the BSE.

The 50-share National Stock Exchange index Nifty tested a three-month high of 3100 before closing with a gain of 97.90 points or 3.28 per cent at 3082.25. It moved between 3103.35 and 2982.25 during the day.

All broader indices on both the major exchanges inched up along with Sensex and Nifty. The BSE midcap gained 33.05 points or 1.16 per cent at 2874.22, small cap gained 21.88 points or 0.69 per cent at 3187.34 and the BSE 500 gained 95.83 points or 2.76 per cent at 3562.17.

On the NSE, the S&P CNX 500 was up 2.60 per cent and Nifty Midcap-50 2.71 per cent.

There are divergent views on market sentiment. Some believe that the U.S. and other parts of the world are showing improvements in their economy.

The U.S.-based Citigroup in its global economic outlook and strategy report on Thursday stated that “We have again lowered our global GDP and inflation forecasts.”

However, these more modest forecasts require concerted fiscal and monetary easing within the constraints imposed by economic structure and political feasibility. In the U.S., there are signs that the pace of recession is set to moderate, though financial conditions and deflation risks are still an obstacle. “The upcoming bank stress tests will be a key litmus test of the governments’ efforts to stabilise the banking system and right the economy,” it added.

In the European Union, a sharp fall in activity data for early 2009 suggests that recession is deeper than earlier expected. The risks of deflation are increasing and should lead the European Central Bank (ECB) to take more unconventional monetary measures by the summer. As Japan is set to post another double-digit decline in the first quarter, the near-term focus of economic policy appears to have shifted to fiscal policy. “Asian data provide glimmers of hope on growth,” stated the Citigroup adding, that “China’s annual People’s Congress has produced hopes for further stimulus, while current policies continue to improve activity.” Citigroup is having a major presence in China, among Asian countries.

PTI reports:

The rupee on Thursday recovered by 15 paise to close at 50.58/59 against the U.S. currency on a strong rally in equity markets and sustained capital inflows.

In active trade at the inter-bank foreign exchange market, the rupee opened higher at 50.64/65 against its previous close of 50.73/75. It later moved in a range of 50.75 and 50.45 before ending the day at 50.58/59.

According to forex dealers, the main reason for the rupee rise was the sharp rally in shares.

The Indian benchmark Sensex on Thursday was higher by 335.20 points to end above the 10000-mark after nearly 11 weeks.

Asian indices also finished in the green on the rally on Wall Street on expectations of early recovery in the U.S. economy. Continued buying by foreign institutional investors in domestic equity markets also helped the rupee recovery. They pumped in $ 574.60 million in the last straight seven sessions since March 17.

The weak dollar overseas against its major rivals and some dollar selling at the fag end also boosted rupee sentiment.

Meanwhile, global crude oil prices were trading above $ 53 a barrel in Asian trade. — PTI

Printer friendly page  
Send this article to Friends by E-Mail

Stories in this Section

BSE index revisits 10000-mark
Sistema Shyam launches MTS brand in India
Global packages to push up prices of metals
Inflation slips to 0.27 %
Threat of triple crises, warns UN
Slowdown not to deter ONGC investments
Tata Tea plans to buy majority stake in Russian co
Hinduja Global Solutions partners Sistema Shyam
Ripcord Consulting expands portfolio
ebm-Nadi to open second facility today
Exchange Rates
Bullion Rates

Copyright © 2009, The Hindu. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu