Even a bandh which paralysed the financial hub of Mumbai failed to stop rampaging bulls. Shares rose to a fresh 26-month closing high on Wednesday, with sentiment bolstered by good corporate earnings and signs of strong foreign fund inflows. The Bombay Stock Exchange’s benchmark Sensex climbed for the sixth straight day to end up 0.42 per cent at 3,780.42 points, a level not seen since late March 2001. The National Stock Exchange’s Nifty Index closed 0.70 per cent higher at 1,183. “The rally has been broad-based which augur well and we expect the trend to sustain for some more time,” said an analyst. Gainers outstripped losers by a ratio of almost two to one. Since hitting a six-month low in last April, the Sensex has risen around 30 per cent on hopes of improved economic growth this year will boost corporate earnings. Foreign funds have pumped in a net $98.4 million into Indian equities in three sessions to Monday, taking their investments in July to $464.3 million. These follow inflows of $586.5 million last month, which were the highest single-month inflows in two-and-a-half years. Volumes rose to 138 million shares from Tuesday’s 137 million, despite a day-long strike called by two political parties in the financial hub of Mumbai over a bus bombing on Monday. The strike affected currency and bond markets where dealing rooms are centralised but stock trading terminals are dispersed across the city and retail investors have the option of online trading, dealers said. “The drivers are good inflows and better-than-expected corporate results,” said another dealer. Bank of Baroda ended up 5.32 per cent at Rs 140.45 after it posted a 34 per cent rise in quarterly earnings. Shares in Canara Bank, which reported a 82 per cent surge in profit, rose 2.91 per cent to Rs 109.75. Indian Oil Corp jumped 3.84 per cent to Rs 412.90 as its profit jumped 51 per cent while Bharat Electronics climbed 4.62 per cent to Rs 366.60 after its earnings more than doubled. Reliance Industries, India’s largest petrochemicals maker and a refiner, ended 0.14 per cent up at Rs 348.30 while consumer goods firm Hindustan Lever Ltd shed 1.12 per cent to Rs 168. The two firms, which have a combined weight of around 28 per cent in the Sensex, release earnings on Thursday. Dr Reddy’s Labs rose 1.7 per cent to Rs 1,148.45. Software services firm iGATE Global Solutions surged the maximum permissible 20 per cent to Rs 149.85 on news it will acquire a 51 per cent stake in back-office start-up Quintant Services Ltd for Rs 86.9 crore.
