Sensex advances for third straight week

Ends at highest close in two months, FIIs turn buyers amidst Greece crisis

The Indian markets on Friday posted their third straight weekly advance to close at the highest level in about two months. The benchmark Sensex and Nifty indices added a per cent during the week on the back of strong buying by domestic investors, buoyed by progress of the monsoon and hopes of easing of interest rates.

Foreign institutional investors (FIIs), too, turned buyers even as they awaited Greece’s referendum on the terms of a bailout. The Sensex on Friday added 147 points, or 0.53 per cent, to 28,092.79, the highest close since April 17, 2014. The 50-share NSE Nifty gained 40 points, or 0.47 per cent, to touch 8,485.

Read more from our special coverage on "GREECE CRISIS"

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• 'Yes' camp takes slim lead in Greek bailout referendum poll
• What looms for Greece after referendum?
• EU, IMF heap pressure on Greece days ahead of crucial vote
• Oil prices ease ahead of Greece vote

According to market players, investor focus now will shift to June quarter earnings, with Tata Consultancy Services announcing its numbers on July 9. Also, the outcome of Greece’s bailout referendum on Sunday will be keenly eyed, with global opinion polls suggesting a balanced result.

“The markets ended the week with gains despite concerns over Greece. The markets seemed hopeful that the outcome of the Greek referendum will not have any significant repercussions on the global economy and especially India,” said Dipen Shah, head (private client group research) at Kotak Securities.

Added Vinod Nair, head (fundamental research) at Geojit BNP Paribas Financial Services, “While the world markets have remained apprehensive about the upcoming Greek vote, India is holding on to its outperformance. Apart from this event risk, India’s trajectory will depend on June quarter results.” On Friday, FIIs net-bought shares worth Rs 356 crore, while domestic institutions were net sellers to the tune of Rs 221, provisional data provided by stock exchanges showed.

According to data compiled by Bloomberg, earnings at the Sensex’s 30 companies, which have declined for two straight quarters, are poised to climb 11 per cent in the three months ended June 30, compared with a 24 per cent increase a year earlier.