April 29, 2010

BSE Sensex Rises 0.5 PCT, Financials Lead

The BSE Sensex was trading up 0.5 percent on Friday, putting it on course to notch its third monthly rise in a row on the back of rising foreign

portfolio investment.

Financial stocks led the rise on expectations the world's fastest growing major economy after China will boost demand for loans and rising incomes will slow down consumer defaults.

Foreign funds have pumped a net $6.3 billion into Indian stock market in 2010, mostly since the start of March, riding forecast for 8.5 percent economic expansion in the fiscal year 2010/11 that started on April 1.

Investor confidence was also underpinned by stronger world markets that were driven by hopes the European Union will agree a bailout for debt-stricken Greece.