Stock markets ended at a 28-month high on Monday as old economy firms rallied on expectations of robust quarterly earnings but the rupee’s continuing rise against the dollar hit export-dependent technology stocks. The 30-share Bombay Stock Exchange (BSE) Sensex crossed the 3,700 mark and closed up 1.21 per cent — or 44 points — at 3,720.75 points, its best close since March 19, 2001. The broader National Stock Exchange (NSE) S&P Nifty Index closed up 0.85 per cent at 1,171.50. Gainers outpaced losers 1,008 to 689 in brisk trade of 125 million shares, a touch below Friday’s 127 million. ‘‘The market undertone is supported by hopes of strong earnings growth,’’ said a dealer.‘‘The momentum is strong and we could test the 3,758 levels,’’ he said, referring to the Sensex high in 2002. The marker has now rallied about 27.2 per cent from a six-month low struck in late April on hopes better economic growth will boost corporate earnings. Markets are hoping that better rains this year, following a drought last season, will help the economy expand by more than 6 per cent compared to 4.3 per cent in the last fiscal year ended March.Reliance Industries climbed 3 per cent to Rs 339.60 and Tata Iron and Steel Co rallied 3.6 per cent to Rs 190.40. Brokers said sentiment was also supported by hopes of further foreign inflows. Offshore funds pumped in a net $320.9 million in the first eight trading days of July, after net purchases of $554 million in the previous month. But these hefty inflows have pushed up the Indian rupee to multi-year highs against the dollar, sparking worries over earnings at technology firms, which get about 70 per cent of their revenues from the US.Infosys Technologies dropped 0.8 per cent to Rs 3,481.30 and Satyam Computer Services shed 3.04 per cent to Rs 193. SBI shot up by 14.05 to Rs 403.20, Zee Telefilm by 12.85 to 117.15, ACC by 7.30 to 179.30, Bajaj Auto by 7.95 to 554.65, Bhel by 5.65 to 285.75, BSES by 5.55 to 299.15, Dr Reddy by 69.60 to 1184.50, Grasim by 5.55 to 501.65, GACL by 4.45 to 200.50, HPCL by 4.60 to 358.45.
