JOIN USThe IMF raised India’s growth forecast for 2010 to 9.5 per cent, stating that favourable financing conditions and robust corporate profits will accelerate economic expansion. The IMF expects India’s economy to grow by 8.5 per cent in 2011.
Asian and European stocks firmed up tracking gains on Wall Street, which was boosted by jobless claims falling and a handful of large retailers reporting solid sales.
Renewed buying in view of market regulator Sebi’s decision to reduce exposure margins for stocks derivatives also boosted the market sentiment.
Investors are also closely watching progress of the monsoon rains, crucial for Indian agriculture. The weather office said monsoon has advanced into key grain-producing states of Punjab and Haryana and is forecast to move further.
Robust growth in industrial production, stabilising domestic consumption-demand, rapidly-growing investment demand coupled with increase in imports and exports seem to have supported the growing investor confidence.
The 30-share Sensex shot up by 372.59 points, or 2.13 per cent, to end the week at 17,833.54 from the last weekend’s close after moving in a wide range of 17,857.58 and 17,395.58.
The NSE 50-share Nifty also shot up by 115.35 points, or 2.20 per cent, to 5,352.45 from its last weekend’s close.
Among the major indices, the BSE-Teck shot up by 186 points, or 5.76 per cent, the BSE-CD by 255.11 points, or 5.39 per cent, the BSE-Realty by 127.99 points, or 4.08 per cent, the Bankex by 397.08 points, or 3.72 per cent and the BSE- Metal rose 455.37 points, or 3.17 per cent.
India’s largest mobile services provider by sales, Bharti Airtel, gained 16.33 per cent as telecom stocks jumped after a foreign brokerage raised its rating on the sector.
India’s second-largest software exporter by sales, Infosys Technologies, moved up by 5.24 per cent ahead of its first quarter earnings announcement.
Major gainers from Sensex pack were M&M, which rose 6 per cent, HDFC Bank 4.71 per cent, DLF 4.75 per cent, State Bank of India 4.57 per cent, Tata Steel 4.44 per cent, Sterlite Ind 4.29 per cent, TCS 4.17 per cent and Wipro flared up 3.70 per cent.
However, ACC declined by 2.73 per cent, HUL 2.51 per cent, NTPC 2.03 per cent and Reliance Ind lost 1.18 per cent. Turnover at BSE and NSE fell to Rs 18,640.33 crore and Rs 53,528.24 crore, respectively from the last weekend’s level of Rs 22,801.55 crore and Rs 65,287.98 crore.
Press Trust of India