Fresh inflows spur markets, Sensex surges 419 points

Written by Markets Bureau | Mumbai | Updated: Jun 28 2009, 02:46am hrs
Indian equity indices closed the day and week with huge gains following strong cues from global markets, fresh inflows from retail investors, and intense buying from foreign funds.

The 30-share Sensex of Bombay Stock Exchange (BSE) closed higher 419.02 points or 2.92% to close the day at 14,764.64 points. The S&P CNX Nifty of National Stock Exchange (NSE) gained 133.65 points or 3.15% to end the day at 4,375.50 points. In the last one week, Sensex gained 242.75 points or 1.67%, while Nifty ended up by 61.9 points or 1.44%.

On Monday, equity bourses closed the day in red, after huge selling was witnessed in the Reliance industries. Selling was seen on Tuesday also. However on Wednesday, before the expiry of Future & Option (F&O) contract for June series, huge short covering led the market to close above the dotted line. On Thursday, markets witnessed huge volatility and closed the day with marginal losses.

Friday, domestic market opened on pleasant note tracking firm cues from the US and Asian markets. Although intra-day trading volatility was witnessed, during the final hours of trading there was huge buying and markets closed the day with gains.

Anita Gandhi, head of institutional business at Arihant Capital markets said, Major trigger was strong cues from the global markets and strong buying from the foreign institutional investors (FII) in NSE, after it adopted free float market capitalisation methodology to calculate its benchmark indices from Friday.

Under the free float method, the index is calculated on the basis of the floating stock or the open market shares of the company as against the method of full float based on the market capitalisation method. Expectations of an investor friendly budget on July 6 also boosted the market sentiments, said Amitabh Chakraborty, president equities at Religare Securities. Provisional figures furnished by the BSE show FIIs were net buyers at Rs 551.14 crores and domestic institutional investors (DII) were also net buyers at Rs 333.95 crores. Breath of the market remained strong and of the 2,733 stocks traded on BSE 1,689 stocks advanced, 937 stocks declined while remaining 107 stocks remained unchanged. 26 Sensex stocks closed the day in green and remaining four stocks closed the day below the dotted line.