The Sensex rose for a second straight year, becoming the best performer among the world’s 10 biggest equity markets as the nation’s economic growth lured record foreign funds.
Bajaj Auto Ltd, the second-largest motorcycle maker and the best performer on the Bombay Stock Exchange’s Sensitive Index, or Sensex, extended gains to 76 per cent this year. Jaiprakash Associates Ltd, a builder of dams, roads and bridges, was the worst performer. Today’s advance pared its yearly loss to 28 per cent.
“India has had very good economic growth and that has lured foreign investors,” said Jitendra Sriram, who manages $750 million as head of equities at HSBC Asset Management (India) Pvt in Mumbai. “They have rewarded us for our ability to grow at a handsome pace.” Sriram favours shares of drugmakers, infrastructure, software and energy companies.
The Sensex gained 120.02, or 0.6 per cent, to 20,509.09, at the 3:30 pm close in Mumbai. The gauge has climbed 2.2 per cent this week and in the current quarter. It climbed 5.1 per cent this month, the first monthly gain in three. The index’s 17 per cent advance this year extended last year’s biggest rally in 18 years. The S&P CNX Nifty Index on the National Stock Exchange rose 0.5 per cent to 6,134.50. The BSE 200 index advanced 0.8 per cent to 2,533.90.
Global funds bought a net Rs 605 crore ($135 million) of Indian equities on December 29, taking this year’s record flows into equities to Rs 1.31 lakh crore, according to data on the Securities and Exchange Board of India website.
