MUMBAI, JULY 6 ---- Bombay Stock Exchange Sensex hitting the 15,000 level for the first time in intra-day trade on Friday. The National Stock Exchange S&P CNX Nifty also hit an all-time high above 4,400 as IT stocks led the bull surge, Dalal Street created history with that result.
The Sensex journey from 14,000 to 15,000 took almost seven months. The index had first hit 14,000 on December 5, 2006. In contrast, it had taken just 26 trading sessions for the Sensex to reach the 14,000 level after it had hit the 13,000-mark on October 30, 2006. It took about 17 months for the Sensex to move from the 10,000 level to 15,000. The barometer index had first struck the 10,000 mark on February 6, 2006.
Barring a small hiccup in early trade, the market headed higher with the passage of time as buying momentum continued unabated. Ahead of their results, IT shares dominated trading throughout the day. A fall in the rupee aided the rally in IT scrips. Buying was also seen in cement stocks, while banking shares saw profit booking. The BSE IT Index surged 3.31 per cent, and was the top gainer among the sectoral indices on the BSE.
After hitting a record high of 15,007.22 in intra-day trading, the Sensex closed with a gain of 102.23 points, or 0.69 per cent, to 14,964.12, an all-time closing high. The S&P CNX Nifty struck an all-time high of 4,411 in late-afternoon trade, and settled 30.90 points, or 0.71 per cent, higher at 4,384.85, an all-time closing high.
The key triggers for the Sensex rally were the softening trend in inflation, indications of interest rates having peaked, the rally in global stock markets and expectations of good quarterly results. “The fall in inflation below the five per cent level boosted the sentiment in the last a few weeks,” said stock dealer RA Poddar.
Though IT stocks led the bull rally on Friday, analysts expect disappointing Q1 results from IT firms due to the appreciating rupee, impact of wage hike and higher visa costs. But some reckon that the negatives about Q1 results are already priced in and the sector’s underperformance offers a good buying opportunity as core business metrics of the IT sector remain buoyant. Wipro rose 3 per cent, while Satyam was the biggest gainer among IT stocks, with a rise of 5.4 per cent. Discounting the inflation factor, which rose to 4.13 per cent as of June 23, foreign funds have been consistent buyers in blue chip counters since June 30.
IT bellwether Infosys kickstarts the Q1 earnings season on July 11.
