Stock market edges up as blasts fail to hit sentiment
Jul 14 2011 , Mumbai
Even after the last terrorist attack on November 27, 2008 in Mumbai, the market had bounced back sharply the next day to end 1.5 per cent up, a sign of solidarity showed by traders who were not unnerved by the attack.
On Thursday, the 30-share Sensex ended at 18,618.20, up 22.18 points, or 0.1 per cent, over its previous close. The day’s trading was marked by high volatility during which the index fell nearly one per cent in early trades to recovery sharply to rise over one per cent thereafter, before trimming most of the gains at close.
The broader 50-share S&P CNX Nifty ended at 5,599.80, up 14.35 points, or 0.3 per cent, from previous close.
The domestic market mirrored the trend seen in other Asian markets, which ended more or less on a subdued note.
"Market showed good resilience and did not budge under the terrorist attack on the city. It's good to see that the focus was more on global events that dictated the domestic market trend today. We may see similar kind of trading activity in the next few sessions with an eye on global markets," said RK Gupta, managing director of Taurus Mutual Fund.
Fund buying, both foreign and domestic, provided the much-needed boost with FIIs buying shares worth Rs 211.46 crore and mutual funds infusing Rs 517.82 crore, according to provisional figures from BSE. Since July 1, foreign institutional investors have purchased shares worth Rs 4,815.03 crore and mutual funds have bought equities worth Rs 12,666.45 crore.
"I don't think the market will react negatively to these kind of cowardly acts, which will not have any major impact on the country's growth prospects. We feel liquidity has been driving the rally in the last couple of weeks, and will continue for a while as India continues to remain as one of the growth-oriented economies for FIIs despite several challenges in overseas and domestic fronts," said Pankaj Pandey, research head with ICICI Securities.
Banking shares led the market up with ICICI Bank, State Bank of India and HDFC Bank ending 0.5 to 1.4 per cent higher.
DLF emerged as the top Sensex performer, ending 3.1 per cent higher. Among other gainers, Tata Motors, Cipla, Jindal Steel, Maruti Suzuki and HDFC rose 1-2 per cent. However, frontline software shares led the laggards with TCS ending 2.2 per cent lower ahead of earnings after the market hours, while Infosys fell 1.5 per cent as investors continued to trim positions amid lower-than-expected earnings.