Market crosses 15,000 mark after five weeks

Powered by the IT sector and good corporate results from within the country and the US, the BSE Sensex today added 446 points to close above 15,000 for the first time in a month.

A firm opening at European and Asian stock markets and the upgrade of Indian stocks by leading international lenders further boosted trading sentiment and the 30-share Sensex climbed 446.09 points, or 3.03%, to 15,191.01.

The 50-share National Stock Exchange index Nifty rose by 127.30 points, or 2.91%, to 4,502.25.20. The Nifty regained 4,500 points almost after a month.

The 13-share BSE IT index was the best performer among sectoral indices, with a rise of 254.33 points or 7.26% at 3,759.61 points, after touching an intra-day high of 3,899.10 points.

The current rally recorded a gain of 9.2% last week, recovering most of the 9.5% loss a week earlier after the Budget revealed the widest budget deficit in 16-years and failed to lay out firm plans to sell state assets.

Unicon financial chief executive G Nagpal said, “Investors are optimistic and think that the worst is behind us. Our markets moved up on strong global cues. Probably a lot of money is playing around the market and is waiting to be invested.”

The stocks’ rating was raised to “equal-weight” from “underweight” at Morgan Stanley, which said uncertainty over earnings in the current fiscal year has been reduced.

Trading sentiment remained bullsh as MSCI’s Asia Pacific excluding Japan Index added 2.3% to 340.79, set for its highest close since September 26. US housing sales unexpectedly rose, increasing optimism that the world’s largest economy is strengthening.

TCS Ltd soared 15.34% as the company posted a 15.27% growth in net profit in the first quarter. Among other IT majors, Wipro gained 7.14% and Infosys Tech 5.66%.

India’s largest private sector company Reliance Industries shot up 5.03% after the Supreme Court posted for September 1 the hearing on cross-appeals filed by RIL, RNRL and the government on a dispute over gas supply.

Among other gainers from the Sensex pack, ICICI Bank was up 6.01%, DLF 5.38%, Hindalco 5.05%, Jaiprakash Asso 4.82%, ACC 4.22%, Sterlite 3.80%, Tata Motors 3.78% and SBI 2.78%.

The market breadth remained strong with 1,837 gainers against 832 losers on the BSE.

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July 20, 2009. Uncategorized.

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