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Sensex gains on strong economic data

July 23, 2009

The BSE Sensex ended 2.6 percent up on Thursday on good corporate results and robust economic data.

Data released on Thursday showed infrastructure output grew 6.5 percent in June while the Wholesale Price Index fell 1.17 percent in the 12 months to July 11.

The 30-share sensitive index swung from an intra-day low of 14,843 to an intra-day high of 15,264 and closed 388 points higher at 15,231.INDIA

The fifty-share Nifty ended 2.8 percent up to 4,523.

On the sectoral front, the BSE Realty Index rose 5.08 percent, followed by the Consumer Durable Index which ended 4.4 percent higher. All other indices ended the day in the green.

Bharti Airtel came out with forecast-beating 24 percent rise in quarterly profits, while Maruti Suzuki reported an unexpected 25 percent rise in quarterly net profits.

Shares in Bharti Airtel ended 1.09 percent down at 813, while Maruti Suzuki ended 6.4 percent higher at 1295 rupees.

On the global front too, investor sentiment remained strong on forecast-beating earnings from major firms which raised expectations for a global economic recovery.

Do you think the Sensex will continue upward on strong corporate earnings and positive economic data?

Comments

Sensex rose 388 points(2.61%)backed by a combination of factors viz. Maruti’s +25% and ACC’s +85% growth in profits in 1Q 2010(Y-o-Y),Infrastructure output up +6.5% in June 2009 and on reports of revival of monsoons.Sensex couldn’t have asked for a better day.

Profits have been better than expected.It is now being hoped that India Inc.will have a rerating for 2009-2010.If new ratings show high divergence from previous estimates,Sensex target could have a deserving boost.

Tomorrow is a R-day.Are any earning surprises from Reliance numbers being expected? Reliance has a peculiar trading pattern on announcement day:scrip is high in the morning but starts to crack by afternoon.

Posted by A.Kapoor | Report as abusive
 

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