Sensex ends at 30-month high

Positive cues from global markets coupled with continuous buying by foreign funds led the benchmark indices...

Written by Fe Bureau | Mumbai | Published:August 20, 2010 2:50 am

Positive cues from global markets coupled with continuous buying by foreign funds led the benchmark indices to close at their 30-month high on Thursday. Equity markets were strongly supported by decline in food inflation and intense buying in the banking stocks.

The 30-share Sensex of the BSE added 197.82 points to end the day at 18,454.94,its highest close since February 05,2008. The broader Nifty of the NSE gained 61.05 points to close the day at 5,540.20,its highest since January 18,2008.

According to provisional figures of the BSE,foreign institutional investors (FII) bought stocks worth over Rs 820 crore,taking their monthly tally to approximately $ 1.35 billion. In the current calender year,FIIs have been net buyers to the tune of over $11.93 billion in the country’s markets.

Navneet Munot,CIO at SBI Mutual Funds,said,“Currently,markets are fairly valued and liquidity flows are also quite strong.” However,he believes that in the short run the Indian markets will follow developments in the global markets,but over the long-term the growth story remains intact.

“Foreign flows will continue to remain the same in the coming months,” added Munot. Dealers in the market also added that the markets remained in positive territory as LIC,the largest domestic investor,was absent from the market on the occasion of the Parsi New Year. In the last few trading sessions,domestic institutional investors were mainly selling. On Thursday,they bought stocks worth over Rs 200 crore. Barring PSU and Realty,all sectors on the BSE ended the day in green with Bankex and FMCG being the top performers of the day. “Banking stocks are in demand as they came out with better-than-expected quarterly earnings which led FIIs to take higher exposure in banking stocks,” said a head of research at a leading broking house.

The NSE’s derivatives segment reported a turnover of over Rs 1.24 lakh crore crore,up by 17% compared to the previous session,while the average daily turnover in the last six months stood at approximately Rs 86,800 crore. The turnover in the cash segment on the NSE was approximately at Rs 14,900 crore,down by 3.5% over Wednesday’s volumes. The average daily turnover in the last six months was at over Rs 13,300 crore.

Most Asian markets on Thursday ended the day in green following positive cues from the US markets. China’s Shanghai Se Composite added 0.81%,while Hang Seng Index rose by 0.24%. Japan’s Nikkei 225 gained 1.32% and South Korea’s Kospi Index went up by 1% on Thursday.

Video of the day

For all the latest News Archive News, download Indian Express App

    Live Cricket Scores & Results