Bulls make a comeback, push Sensex up 2 percent (Roundup)

April 8th, 2009 - 7:02 pm ICT by IANS  

Sensex Mumbai, April 8 (IANS) Defying bearish trends in global bourses, Indian equities markets closed in the green Wednesday, after ruling in the red during most of the day. A key index ended trade about 2 percent higher than its previous close.
The 30-scrip Bombay Stock Exchange (BSE) sensitive index (Sensex), which opened at 10,283.58 points, lower than its Monday close, rose 207.47 points or 1.97 percent to close at 10,534.87points.

Similarly, the S&P CNX Nifty of the National Stock Exchange (NSE) gained 2.65 percent from Monday’s close to end trade at 3,342.95 points.

The BSE midcap index gained 3.11 percent, while the BSE smallcap index was up 4.47 percent.

“This rally has caught quite a lot of people by surprise and has given a breathing space to investors,” said Jagannadham Thunuguntla, equity head at SMC Capitals.

“Markets were in a seemingly safe zone between 8,000 and 10,000, If you had bought in this zone you could have booked profits in the short-term and definitely in the long-run. However markets are now at the higher side of the safe zone and buying at this level does have higher short-term risks,” added Thunuguntla.

All but one of the 13 sectoral indices on the exchange turned positive, with the indices for realty, consumer durables and FMCG stocks gaining the most. Banking stocks, however, saw some selling.

The Sensex rallied almost 5.5 percent from its lowest point in the day, backed by gains in companies like NTPC Ltd.

NTPC reported a 5.6 percent increase in its provisional net profit for 2008-09 at Rs.7,827 crore ($1.5 billion), compared to Rs.7,415 crore the year before. The scrip surged 8.35 percent during the day to touch an intra-day high of Rs.199.75, and closed at Rs.196.75, an increase of 6.7 percent.

Among gainers on the 30-scrip composite Sensex were Jaiprakash Associates, up 8.71 percent at Rs.106.05; NTPC, up 6.7 percent at Rs.196.75; Tata Motors, up 6.29 percent at Rs.222.30; and Hindustan Unilever, up 6.06 percent at Rs.240.80.

Losers included Mahindra and Mahindra, down 3.54 percent at Rs.449.30; Hindalco, down 2.92 percent at Rs.58.20; Reliance Communications, down 2.18 percent at Rs.213.35; and HDFC Bank, down 1.61 percent at Rs.1,045.85.

The overall market sentiment was positive, with 2,021 stocks advancing, 468 scrips declining and 63 remaining unchanged.

In other Asian markets, Tokyo stocks ended in the green with Japan’s benchmark Nikkei 225 Stock Average closing at 8,595.01 points, 237.84 points lower than its previous close.

The Hang Seng, a key index of the Hong Kong Stock Exchange, ended trade 3.04 percent below its last closing figure at 14,474.86 points.

European markets, which came online before Indian bourses ended trade, slid into the red with the FTSE in Britain trading 0.44 percent lower than its previous close. Its French peer CAC 40 was ruling marginally 0.12 percent in the red.

Data with the market watchdog, Securities and Exchange Board of India (SEBI), showed that foreign funds that bought $42.70 million worth of shares were net investors in equities Thursday.

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