Sensex on a roll, closes above the 17,000 level

Hopes of good Q2 results spur markets

Both the key indices of BSE and NSE touched their highest level in more than 16 months, with Sensex surpassing 17,000 level to close at 17,127 (up 274 points) while Nifty closed at  5,084 mark (up 77 points). 

Gains in European stocks and higher US index futures, also bolstered the investor sentiment at Dalal Street, coupled with a decent listing of Oil India which settled at a premium of 8.62 per cent over the issue price of the  IPO at Rs 1050 also aided the sentiment. 

There is optimism about Q2 September 2009 results after advance tax collections registered a positive growth in the second quarter after witnessing a negative growth in the first quarter.

Tax collection up
Corporate advance tax and advance personal income-tax were up by 14.7 per cent and 1.7 per cent, respectively in the September 2009 quarter.
Banking stocks rose after Finance secretary Ashok Chawla on Tuesday said there is a need to look at consolidation of banks and that government is not discouraging Indian banks from making acquisitions abroad.

That apart, latest economic data has been strong which envisaged the index of six core industries having a combined weight of 26.7 per cent in the index of industrial production (IIP) registered a growth of 7.1 per cent in August 2009. Analysts remain bullish about markets even at the current levels as exemplied by Anand Rathi Financial Services Vice President (Retail) D D Sharma who maintains that “valuations are normal at the current levels though the upsurge from March lows appears too fast.” 

He pointed out that since most of the listed companies reported double digit growth in the last quarter, it is expected that Indian corporates are on strong footing.
Agreed Emkay Global Financial Services Head (PCG) Daljeet Kolhi, “Some more steam is left in the Indian stock markets which can fetch reasonable returns compared to their peers in developed countries. Emerging markets are good place for foreign investors to park money and this only points to up-move in the markets”.

The market saw a total turnover of Rs 82,231.76 crore which included Rs 55,412.81 crore in NSE’s futures & options (F&O) segment while NSE cash segment accounted for Rs 20,150.03 crore and the balance Rs 6,668.92 crore from the BSE cash segment.
The market breadth, indicating the overall health of the market, was strong with as many as 1,593 shares on BSE rose as compared with 1,183 scrips that declined, while a total of 76 shares remained unchanged. From the Sensex pack, 26 rose and the rest fell.

Meanwhile in the bourses abroad, European shares rose as is evident from key benchmark indices in France, Germany and UK were wentup up by 0.08 to 0.35 per cent.
Most Asian stocks too rose shrugging off a surprise fall in US consumer confidence. Key benchmark indices in Japan, China, Taiwan, South Korea were up by between 0.37 to 1.07 per cent, while key benchmark indices in Hong Kong and Singapore were down by between 0.28 to 1 per cent.

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