Indian shares rally to a new high despite floods
Mumbai: Sustained institutional buying interest in heavyweight stocks propelled India's key share market index to a new all-time high Monday even as the city grappled with a devastating flood that has killed over 400 people.
The stock market barometer 30-share Bombay Stock Exchange sensitive index or Sensex closed at 7,669.45, representing a gain of 34.03 points or 0.45 percent over its previous session's close.
The market benchmark bettered its all-time closing high of 7,635.42 touched Friday on across-the-board buying interest.
The stock market closed in the positive zone for the 13th consecutive week Friday, making it one of the best performing bourses globally in the current year on hopes that a normal monsoon would boost economy in the current year.
India's blue-chip equities have soared sharply higher in the last few weeks' trade.
Dealers said the stock market opened for the day Monday on a sluggish note with most of the bulk investors staying away from the trading ring amid torrential rains that pounded the city.
The market movement picked up in the intra-day trade as institutional investors betted on impressive sales growth number of cement and automobile companies in July.
The trading volume on the bourses was, however, lower than the previous sessions as many institutional buyers failed to make it to their office due to flooding in many parts of the city.
The relentless rains since Saturday night turned out to be the worst calamity to hit the city of 15 million people.
Thousands were stranded on railway stations and at the airports, and a beleaguered state government asked people to stay put at home and airlines to stop flying to the city.
"The rally on the bourses despite the prevailing adverse situation proves the underlying bullishness on the bourses. The market is basically being driven higher on increased liquidity," said an analyst with a domestic brokerage firm.
"The market is, however, likely to see some correction in the days ahead after witnessing hectic buying activities all these weeks," added the analyst.
In the old economy sector, shares of Hero Honda Motors, the country's largest motorcycle maker, gained 2.4 percent to touch Rs.628.65 after it said the company's sales in July rose 12 percent to 230,050.
India's largest carmaker Maruti Udyog ended 2.3 percent higher at Rs.493.25. The company said in the intra-day trade Monday that its sales expanded by three percent last month to touch 44,753 units.