Corporate earnings as well as infrastructure growth combined to push Sensex to record a day of tangible gains, after a 2-day losing streak.
Today the spark was lit by the performances of Maruti Suzuki and ITC. While Maruti’s first quarter results showed that its net profit was up a whopping 25 per cent at Rs 584 crore, the figures for ITC were 17 per cent at Rs 879 crore. Another good news was the infrastructure sector growing by 6.5 per cent in June after having recorded 2.8 per cent in May. The signs of economic recovery were also aided by positive cues flowing from Asian markets. The final positive for the day was the Reserve Bank of India letting foreign companies to raise money in Indian bourses via the Indian Depository Receipts (IDRs).
All of these enabled the Sensex to race towards a 388-point gain and the index to regain the 15,000-point level, to close at 15,231.04 points, up by 2.61 per cent.
While Maruti Suzuki and ITC were up on account of their results, Bharti Airtel was not able to pull off a similar coup even though it announced a 22.21 per cent growth in net profit. Airtel was down by 1.09 per cent. The reason behind it was the fall in the company’s average monthly revenue per user vis a vis the corresponding previous quarter.