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Markets: Hopes propel Sensex

	June 01, 2009

Driven by the good news on the GDP front and the positive outlook expressed by new central ministers taking charge, particularly the statement by Petroleum Minister Murli Deora on deregulation of petroleum prices proved a major booster for the Sensex, which surged 329 points to close at 14,625 points.



The benchmark index hit a low of 14,384 and a high of 14,726 in intra-day trade. In the broader markets, the Nifty shot up 112 points to close at 4449. Investors were also encouraged by the country's Q4 GDP growth numbers which stood at 5.8 per cent. Though much lower than the nearly 9 per cent growth rate of a year ago, the markets were predicting far lower numbers, analysts said.



Firming trends in global markets on the back of positive economic data by the US also supported trading sentiment in India.



The Sensex, which had gained nearly 710 points in the past two sessions, gained another 329.24, or 2.30 per cent to close at 14,625.25 after rising to 14,727.28, a level last seen in September last year.



Similarly, the 50-share National Stock Exchange index Nifty also surged 111.85 points, or 2.58 per cent, at 4,448.95 after touching an intra-day high of 4,488.05 and a low of 4,340.75.



The Indian economy grew 6.7 per cent in 2008-09, considered better than expected especially at a time when the global economy is estimated to grow at only 2.6 per cent. With the sea change in trading sentiment, even non-specified small- and medium-cap stocks were also bought.



Among the Sensex stocks, heavy-weight Reliance Industries gained 2.59 per cent at Rs 2,277.50, realty major DLF Ltd surged 8.41 per cent at Rs 403.30, engineering giant Larsen and Toubro was up 4.75 per cent at Rs 1,405.60 and ONGC moved up 3.99 per cent at Rs 1,175.90.





Asian markets gain after jump in Japan production

Asian stocks were modestly higher after Japanese industrial production jumped at its fastest pace in 56 years, in the latest sign recession was easing in major economies.

But trading was tepid as many investors held back because of doubts about how much longer the aggressive run in world stock markets this spring can last. Among the day's best performers were resource producers like oil firms, lifted by stronger commodity prices.

In Japan, industrial output jumped 5.2 percent in April, the government said, as companies raised production following drastic cutbacks because of the unprecedented drop in demand late last year.

It was evidence that manufacturers in the world's second largest economy are starting to heal amid the country's steepest recession since World War II. Still, a rise in Tokyo's market was capped by other reports showed continuing pain for workers and consumers.

Markets could be directionless for now, analysts say, as a hesitancy among many investors to buy more stocks is offset by the massive liquidity brought on by stimulus spending and rock-bottom interest rates around the world.

South Korea's Kospi was up 0.1 percent at 1,393.62. Australia's key index both climbed 1.6 percent.

Financial markets in mainland China and Taiwan were closed Friday for a holiday.

In New York Friday, the Dow rose 103.78, or 1.3 percent, to 8,403.80. The S&P 500 index rose 13.77, or 1.5 percent, to 906.83.

Wall Street was poised to give back some of its gains after U.S. futures declined. Dow futures were down 17 points, or 0.2 percent, at 8,367 and S&P futures were little changed at 905.30.

Oil prices pulled back from a six-month high in Asia, with benchmark crude for July delivery down 16 cents to $65.24 a barrel. The contract rose $1.63 to settle at $65.08 overnight, boosted by a fall in U.S. oil inventories and better economic news.

The dollar fell to 96.50 yen from 96.76 yen. The euro was higher at $1.3988 from $1.3939.