Stock market benchmark Sensex on Wednesday gained for the sixth straight day, adding 50 points, as funds shopped for shares on reports of higher quarterly tax payments by companies, raising expectations of earnings growth.
A firming trend in Asian region and higher opening at Europe on revival of buying by foreign funds on easing concerns about the sovereign debt concerns in Euro zone, further fuelled the uptrend and placed the Sensex at six week high.
The Sensex, which had gained 796 points in last five trading sessions, advanced further by 50.04 points to 17,462.87, its longest rising streak in nine months. The gauge touched the day’s high of 17,530.38.
In 30-BSE index components, 14 stocks closed with gains and 16 ended with losses.
The broad-based National Stock Exchange index Nifty also rose by 11 points to 5,233.35, after touching the day’s high of 5,255.65.
Trading sentiment further boosted on reports of higher quarterly tax payments by companies, that kindled expectations for higher earnings growth and greater demand for loans.
The impact was seen in sectors like auto, banking and realty, which are more linked to loans.
The Auto sector index gained the most by rising 1.29 per cent to 8,110.83 as Tata Motors, the nation’s largest truck maker, rose to the highest in a month after global sales increased 50 per cent in May.
Information Technology sector led by Infosys Technologies surged as the Indian rupee hit the highest level in four weeks against the dollar. The software exporting companies get over 40 per cent of their revenue from the U.S. markets. The second heaviest on the Sensex, Infosys shot up by Rs 30.60 to Rs 2,766.65.
