Written by: ENS Economic Bureau
3 min readMumbaiJun 4, 2010 02:02 AM IST
First published on: Jun 4, 2010 at 02:02 AM IST
Bulls tightened their grip on Indian stocks with the BSE benchmark Sensex regaining the 17,000-level on good buying support on the back of firming global stocks. Rising for the second day in succession,the Sensex rose 280.49 points at 17,022.33. The last time the Sensex closed above the 17,000 mark was on May 13. The National Stock Exchange’s 50-share Nifty closed up 1.81 per cent at 5,110.5.
The Sensex,which had fallen below the 16,000 level briefly last week, has now gained nearly 1,000 points in the last one week. Foreign funds,which pulled out 2 billion last month,also became buyers and purchases stocks worth Rs 406 crore on Wednesday.
Investors accumulated banking,technology,oil and gas and IT stocks. The market was oversold in past month on worries of euro zone debt crisis and the rise was due. In coming sessions also,we may see upside trend as globally markets are rebounding, said a dealer. Global stocks hit a two-week high on Thursday as expectations that Fridays US jobs data will be stronger than forecast encouraged investors to take on risk. Prices of gold and US Treasuries fell as risk appetite increased following a report that significantly revised up the number of private sector jobs created in the US in April. Jobs created in May were fewer than forecast,however.
The rise in other global markets also boosted Indian stocks. A widespread rise was seen among all the major indices. In Asia,Japan was the best performer,with Nikkei index surging 3.2 per cent. European stocks edged higher and were firm in the mid-day trade. The US markets rose overnight on reports of strong home sales,and boosted the investor sentiment across the globe.
Anil Ambani Group firm RCom,which surged 11 per cent on Wednesday amid reports of stake sale by the company,maintained its winning streak with 6.3 per gain,the best among Sensex stocks today. The scrip has gained 18 per cent in just two sessions amid reports that UAE based Etisalat is interested in the firm for a possible stake buy. Reliance Industries,which carries the maximum weight in the Sensex,jumped 1.90 per cent. Investors ignored a rise a rise in country’s food price index. Food inflation for the week ended May 22 rose to 16.55 per cent.
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