The BSE benchmark Sensex regained its psychological 17,000 level by surging 255 points on persistent buying mainly in auto, FMCG and PSU counters on robust GDP growth, strong auto and cement sales and recovery in the world stock markets.
Better-than-expected performance by manufacturing, mining and quarrying industries helped the Indian economy grow by a healthy 8.6 per cent in the last quarter of 2009-10, boosting the market to some extent.
The gross domestic product (GDP) grew at 7.4 per cent for 2009-10, higher than the February projection of 7.2 per cent.
ADVERTISEMENT
Auto stocks were in the limelight after unveiling robust sales figures for May 2010.
Shares of India’s second-largest listed cellular services provider by sales Reliance Communications (RCom) gained 14.04 per cent on reports the company was considering a merger with South Africa’s MTN Group or roping in a strategic foreign investor to fund its foray into 3G services.
Business activity remained strong for India’s vast services sector in May 2010, with a key gauge growing for a 13th consecutive month.
ADVERTISEMENT
The 30-issue Sensex opened higher at 16,872.17 and shot further to 17,150.42 before ending the week at 17,117.69, a net rise of 254.63 points, or 1.51 per cent, from its last weekend’s close. U.S. stocks rallied during the week as investors rushed back into beaten-down shares.