This is a discussion on Shares rise over one percent on fund inflows within the Investment forums, part of the Financial Services category; India's blue-chip equities rose over one percent Wednesday, propelling the benchmark share market index to a three-month high, on robust ...
India's blue-chip equities rose over one percent Wednesday, propelling the benchmark share market index to a three-month high, on robust foreign funds inflows and hopes of a normal monsoon.
The stock market barometer 30-share Bombay Stock Exchange sensitive index or Sensex closed at 6,858.24, representing a gain of 76.99 points or 1.14 percent over the previous session's close.
Dealers said the stock market opened for the day with a positive gap after closing in the positive zone for the last four consecutive sessions on sustained institutional buying interest.
The stock market rally gained momentum in the intra-day trade on large-scale buying in index heavyweights like Reliance Industries on company specific news and hopes of a normal monsoon.
The June-September monsoon is very crucial for the Indian agricultural sector, which accounts for one-fourth of the country's total economic output and provides employment to nearly 70 percent of the population.
India's economy grew by 6.9 percent in the fiscal year ended March 31, 2005 on top of a higher increase of 8.5 percent in the previous year on increased agriculture production.
"The stock market managed to breach the psychological barrier of 6,800 today mainly on the back of a rally in Reliance group shares and select technology heavyweights," said an analyst with a domestic brokerage firm.
"The overall investors' sentiment has really turned bullish on hopes that the country would receive normal rainfall in the current year, boosting the overall economy," the analyst said.
Foreign institutional investors, who are considered the backbone for India's liquidity starved capital market, have also turned aggressive buyers in the past few sessions after resorting to large-scale selling in the last month.
Buying in Reliance group stocks has been fuelled by reports that the broad framework to settle the row between Reliance Industries chairman Mukesh Ambani and his younger brother Anil Ambani, vice chairman, would be formalised soon.
Reliance Industries had Monday refused comments, saying it was unaware of the veracity of such reports.
In the old economy sector, shares of Reliance Industries gained 1.8 percent to touch Rs.557.95 on fresh institutional buying interest.
Reliance Energy, the power utility arm of Reliance Industries, rose four percent to Rs.571.50 after the company announced plans to set up a Rs.480 billion coal-based power plant in Orissa.
In the new economy sector, shares of Infosys Technologies, the second largest software exporter, ended nearly three percent higher at Rs.2,302 and Hyderabad-based Satyam Computer closed with a gain of 2.6 percent at Rs.472.