Sensex surges 795 points on strong economic outlook


Mumbai : A benchmark index for Indian equities surged almost 800 points in this week’s trading, the sharpest rally in over a year, as foreign institutions invested heavily on the back of strong macro-economic outlook.

Support TwoCircles

The 30-scrip sensitive index (Sensex) of the Bombay Stock Exchange (BSE) rallied 795.09 points or 4.23 percent in the weekly trade. The index closed in the positive four out of the five trading sessions.

Strong inflow of funds from the foreign institutional investors has led the rally at the Indian bourses for the second successive week. The country’s benchmark index has gained 1,373 points in the last two weeks of trading.

Finance Minister Pranab Mukherjee said Thursday the Indian economy would grow by 8.5 percent during the current fiscal and 9 percent in 2011-12. It grew by 8.8 percent in the first quarter of fiscal 2010-11.

Sensex advanced 177.26 points or 0.91 percent to 19,594.75 Friday, the highest closing level in 34 months.

On the last trading day of the week, of the 30 stocks trading in the Sensex, 24 advanced while six closed in the red.

Reliance Comm went 5.28 percent up at Rs.166.45; ACC 3.24 percent higher at Rs.997.55; Bharti Airtel up 2.93 percent at Rs.357.90; RIL up 2.58 percent at Rs.1,026.75; and Sterlite Inds up 2.09 percent at Rs.173.25. These were among the major gainers in percentage terms at the Sensex.

At the National Stock Exchange (NSE), the broader 50-share S&P CNX Nifty closed 0.97 percent or 56.25 points higher at 5,884.95 points Friday.

Most Asian markets advanced on the last trading day of the week, with Japan’s Nikkei rising 1.23 percent at 9,626. Hong Kong’s Hang Seng closed 1.29 percent higher at 21,971.

The bourses in the US also ended the week on a positive note. Dow Jones industrial index closed 0.12 percent higher at 10,608. S&P 500 advanced 0.08 percent at 1,125.59 and Nasdaq closed 0.54 percent higher at 2,315.61.

However, the European bourses closed in the red. The FTSE 100 fell 0.57 percent to close at 5,508.45 points.

The German DAX closed 0.64 percent down at 6,209 points and the French CAC 40 declined 0.38 percent to 3,722.02 points.