India Inc gives thumbs up to rally in equity mkt

NEW DELHI: Welcoming the rally in equity market, corporate India said the Bombay Stock Exchange benchmark Sensex crossing the 12,000-level mark could be an indication of economic recovery.

Improving manufacturing activities have attracted foreign institutional investments into the country and the Indian market seems to be catching up with the global trend, Ficci President Harsh Pati Singhania said.

"(The) sharp rise in Sensex today augurs well but should be treated with caution," he said.

Assocham President Sajjan Jindal said the reflection of sectors like steel and cement picking up seems to have fallen on the stock market.

After performing poorly for sometime, six core infrastructure industries expanded by 2.9 per cent in March from 2.2 per cent in the previous month.

For an economy that "has been passing through tough times", the bellwether Sensex at seven-month high is an indication that "things may start looking up in the near future", PHD Chamber Secretary General Krishan Kalra said.

The 30-share barometer spurted by 731.50 points, the largest single-day gain this year, to 12,134.75, a level never seen after October 3 last year. Today's 6.41 per cent surge took the Sensex over 50 per cent above the 2009 low in early March.