Sun, 20 Sep 2009 10:45:34 GMT

Sensex, Nifty hits nearly 16-month high in the week

Mumbai: Sharp rally in most of the sectors paved the way for both the key indices, Sensex and Nifty, to hit a nearly 16-month highs and improved further by about three per cent during the week under review, stimulated by a host of positive factors.

Sensex was in the vicinity of 17K-mark, while Nifty pierced through 5K-mark during the intra-day trade.

After moving in a range of 16,820.02 and 16119.95, the Bombay Stock Exchange 30-share index ended the week at 16,741.30, the level not seen since May 22, 2008, a rise of 477.00 points or 2.93 per cent over its last weekend close.

The broader 50-issue Nifty of the National Stock Exchange touched a high of 5,003.05 before concluding the week at 4,976.05, a net gain of 146.50 points or 3.03 per cent.

Reports of higher advance payments by some big corporates for the second quarter, indicating revival in the economy amid heavy portfolio inflows, mainly boosted the market sentiment.

Firm global cues also helped local bourses to keep the tempo upbeat. Most of the world markets closed the week up on encouraging rise in US retail sales in August and hopes of global economic recovery after the US Federal Reserve Chairman, Ben S Bernanke, said the worst US recession since the 1930s has probably ended.

Signal of the apex bank not to hike interest rates till the economic recovery is on a strong footing, too supported the market. .

Significantly, so far in 2009, the Bombay Stock Exchange's benchmark index Sensex gained over 73 per cent.

Nifty, the benchmark index of National Stock Exchange has also advanced fairly so far this year.

In long term, the rise in benchmark index would continue, Sisodia added.

"The Indian market has seen a huge inflow of funds from overseas investors and crossing 10 billion dollars level is not tough in the current month," Ashika Stock Brokers Research Head Paras Bothra said.

After pulling out a hefty Rs 52,986 crore (11.9 billion dollars) from the local stock markets last year, FIIs remained net seller of shares for the first two month of current year.

However, with the sign of revival of economies, the trend turned positive during March and marketmen feel that the year will close with huge inflows.

FII inflows to cross $10 bn-mark

Foreign investment in the Indian stock markets may cross $10 billion-mark by the end of this month as a hefty $9.8 billion (Rs 47,674 crore) have already been poured into the bourses by overseas entities so far this year, analysts feel.

"FII inflows in the Indian equity market would continue in the coming days and it may cross USD 10 billion level by September-end," Anand Rathi Financial Services Director & Head of Research Tarun Sisodia.

Foreign institutional investors (FIIs) are the net buyer of shares worth Rs 47,674 crore so far in this year, according to the data available with the market regulator or Securities and Exchange Board of India (SEBI).

The infusion of money by overseas investors in shares is a part of their portfolio management in various emerging markets and India is part of that strategy, Sisodia, who is based in Mumbai, said.

So for in this month, foreign investors have infused over Rs 7,400 crore ($1.5 billion), increasing their total net investment, since FIIs were allowed in India, to over Rs 2.78 lakh crore ($65 billion), as per SEBI data.

"FII investment in the local markets may cross $10 billion mark by end of this week. As everything is bullish and picture of Indian stock market is very rosy," Delhi-based SMC Global's Vice President Rajesh Jain said.

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