Corporate India and Global Cues Push Sensex to 13-month High

MUMBAI - Corporate India provided a much needed boost to investors this week and buying interest at Indian equities markets resurfaced in the wake of a good set of earnings reports, pushing a key index to a 13-month high.


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Published: Mon 3 Aug 2009, 12:37 AM

Last updated: Thu 2 Apr 2015, 3:42 AM

Other Asian markets also provided a prop to their Indian peers, with some key indices touching new highs. The 30-share sensitive index, or Sensex, of the Bombay Stock Exchange rose 291.35 points or 1.89 per cent over previous Friday’s close and ended trade at 15,670.31 points. This was its highest closing figure since June 17, 2008.

The broader S&P CNX Nifty of the National Stock Exchange followed the Sensex, moving up 1.5 per cent from its last weekly close to end at 4,636.45 points.

Lesser market capitalised scrips did better with the BSE’s midcap index closing 3.52 per cent higher than its previous weekly close, while the BSE smallcap index was up 2.57 per cent.

Data with markets watchdog Securities and Exchange Board of India showed that foreign funds were net buyers during the week, having bought scrips worth $735.7 million. In July, foreign investors bought a total of $2.28 billion.

“Positive results by corporates is proof that the economy is on the verge of a turnaround. This will continue to help the markets gain momentum,” said Jagannadham Thunuguntla, equity head at SMC Capitals.

Indian equities started the week on a volatile note with the benchmark indices trading in a see-saw like pattern till about Wednesday.

Late buying of heavyweight stocks helped the Sensex recoup most of its losses on Monday, though it still ended trade 3.92 points lower after having slipped deep into the red. It ended trade 3.92 points or 0.03 per cent lower at 15,375.04 points.

The Nifty, however, closed 0.08 per cent higher at 4,572.3 points.

The Reserve Bank of India announced the first quarterly monetary policy review on Tuesday, but it turned out be a non-event for the markets with the central bank maintaining a status quo on key policy rates.

The Sensex shut shop 43.1 points or 0.28 per cent to close at 15,331.94 points. It had managed to crawl into the positive terrain about an hour before closing bell after languishing in the red for most of the day.

The Nifty too ended in the red, closing 0.18 per cent lower at 4,564.1 points.

Profit booking and a crash at the Chinese bourses pulled down the Sensex 158 points into the red on Wednesday, even though it managed to salvage some of the losses. It had slipped more than 443 points around noon after Chinese bourses tanked.

The Sensex closed at 15,173.46 points — 158.48 points or 1.03 per cent lower than Tuesday’s closing figure. Similarly, the Nifty closed in negative terrain, 1.11 per cent down at 4,513.5 points.

Thursday saw the markets welcome a good set of corporate earnings and pushed the Sensex 214.5 points or 1.41 per cent higher at 15,387.96 points. A bit of short covering before expiry of the futures and options contract for July also helped the rise. The Nifty too closed in the positive terrain, 1.28 per cent up at 4,571.45 points.

Indian equities were again up on Friday, with investors taking cues from a sustained Asian rally and corporates continuing to provide positive earnings results.

The Sensex which opened lower at 15,449.47 points, shut shop at 15,670.31 points — 282.35 points or 1.83 per cent higher than Thursday’s closing figure. It was the highest closing since June 17, 2008.

The Nifty moved up as well rising 1.42 per cent to 4,636.45 points.

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