Sensex zooms by 200.69 pts on firm global bourses

Mumbai, June 14: The Sensex today zoomed by a whopping 200.69 points on the Bombay Stock Exchange (BSE) to settle firmly on positive terrain at 14,203.72, propelled by strong global markets that induced strong buying interest in index pivotals here.

''The market opening higher at 14,087.91, which was also its lowest for the day, kept on advancing during the course of the trading session. Strong buying interest was seen for index pivotals and at one time even reached a high of 14,219.24. Strong global markets supported domestic bourses today,'' market analysts observed.

On the other hand, the broader National Stock Exchange (NSE) also surged by 58.70 points to close in the green at 4,171.75 from its previous close of 4,113.05, after moving between 4,173.40 to 4,113.05 during the days session.

The total turnover on the BSE amounted to Rs 4402 crore.

Analysts explained that the market breadth here was strong as there were over 2 gainers for every loser. 1,734 shares advanced as compared to 837 that declined, while 98 remained unchanged.

Among the Sensex pack, 26 advanced while only 4 declined.

The Rupee again rose today, buoyed by positive cues from high-yielding Asian currencies as dealers bet that foreign investors would continue pouring in funds into the surging Indian economy. In early trade, the Rupee was at 40.89/90 per US dollar, moving up from yesterday's 40.96/97. It may be recollected here that the Rupee had hit a nine-year peak of 40.28 in late May, this year.

Today's winners included HDFC, ACC, Grasim, Satyam Computers, Infosys, Wipro, TCS, Larsen&Toubro (L&T), Reliance Industries (RIL), ONGC, Bank of India, Bank of Baroda, Andhra Bank, Federal Bank, Vijaya Bank and State Bank of India (SBI).

The prominent laggards were Hero Honda Motors, ICICI Bank, Tata Motors and ITC.

Majority of Asian indices moved higher today as exporters such as Sony Corp and Samsung Electronics advanced on positive US economic news, while Woodside Petroleum took its cues from rebounding energy prices after crude oil moved back above USD 66 a barrel in the US.

Hong Kong's Hang Seng rose 1.40 per cent, while Japan's Nikkei advanced by 0.62 per cent. Taiwan's Taiwan Weighted up 1.25 per cent, Singapore's Straits Times rose by 0.63 per cent and South Korea's Seoul Composite gained by 2.74 per cent US stock futures bounced higher today as steady benchmark bond yields drove a rebound in global equities, but the tone was cautious ahead of a key inflation report.

Investors were nervous ahead of May Producer Price Index (PPI) data, with a hotter-than-expected report seen likely to trigger a further slide in bonds and a move in yields back to five-year highs.

Bond prices and yields move inversely. The report would follow several reports, including retail sales data yesterday, pointing to strength in the economy.

S&P 500 futures were up 3.30 points, above fair value, a formula that evaluates pricing by taking into account interest rates, dividends and time to expiration on the contract. Dow Jones industrial average futures were up 35 points while Nasdaq 100 futures were up 5.75 points.

Unfavourable PPI data would help extend selling in Treasuries, which has pushed the 10-year yield roughly 35 basis points higher in the past week, putting investors on edge about the outlook for takeovers and corporate profits as borrowing costs rise.

US stocks jumped yesterday as lower bond yields triggered a rebound in utilities and other shares sensitive to interest rates, while signs of strength in the economy reassured investors.

The Dow posted its best day since July after data signaled strength in US consumer spending and a Federal Reserve report showed no increase in wage pressures while the economy grew last month, experts said.

UNI