The benchmark Sensex closed above 37,000 points, while the Nifty 50 Index topped 10,900 for the first time in over four months. The indices advanced for a third day, extending a weekly gain on early signs of a revival in the economic growth, coupled with favourable earnings reports.
The S&P BSE Sensex climbed 1.5 per cent to close at 37,020.14- most since March 6. The index rose more than 1 per cent for the week – logging its fifth weekly gain.
It also breached the 200-day moving average (DMA), a technical barrier that it’s been flirting with since early this month. The Nifty 50 ended at 10,901.7, up 162 points, or 1.5 per cent.
The benchmark indices have given positive returns in seven of the last eight weeks.
As the earnings season for the quarter through June continues, four out of five Nifty 50 companies that have reported results so far have beaten estimates. Britannia Industries reported profit above expectations on Friday and HDFC Bank results are due Saturday.
“HDFC Bank has good amount of loan growth in this quarter so their results are expected to outperform,” said Deven Choksey, managing director, KRChoksey Investment Managers. “For the index to move beyond the barriers, the financial stocks have to move.”