India shares breach 19,000 points level

MUMBAI, September 13, 2010 (AFP) – India’s main stock market on Monday crossed the key 19,000 points marks to its highest level for more than two years, boosted by optimism about growth in Asia’s third largest economy, dealers said. The 30-share Sensex hit a day’s high of 19,095.74 in morning trade, before retracing marginally to 19,072.35, up 1.45 percent or 281.24 points.

The index last broke the 19,000-point level on January 16, 2008.

Buying was hectic in banking, oil, engineering and software shares as investors bet on the economic recovery and hopes of strong second-quarter earnings next month.

“Overseas fund flows are improving. India’s industrial activity data is also strong,” said Gaurang Shah, vice president with Geojit BNP Paribas Financial Services.

Foreign funds have pumped 13.63 billion dollars into Indian equities this year, against 8.62 billion dollars at the same period last year, data from the market regulator shows.

The rise in the stock market came as industrial output in July surged by a forecast-busting 13.8 percent, data showed Friday, reflecting the Asian giant’s strong recovery from the global financial crisis.

“Much of the global concerns appear to be behind us. The m