Markets rally on global cues, Chidambaram pep talk (Second Lead)October 13th, 2008 - 1:02 pm ICT by IANS
Mumbai, Oct 13 (IANS) After a week of utter mayhem, Indian equities markets were back in the green Monday following strong global cues as well as a pep talk from Finance Minister P. Chidambaram.Half an hour into trading, the benchmark 30-share index of the Bombay Stock Exchange, the Sensex, was at 10,921.80 points, up 393.95 points or 3.74 percent from its previous close Friday at 10,527.85 points.
Similarly, the broader-based 50-share S&P CNX Nifty index of the National Stock Exchange (NSE) also opened strong and half an hour into trading was ruling at 3,374.90, up 94.95 points or 2.89 percent from its previous close Friday at 3,279.95 points.
The BSE midcap index was at 3,775.72 points, up 99.72 points or 2.71 percent from its previous close Friday at 3,676.00 points.
The BSE smallcap index was at 4,480.12 points, up 124.67 points or 2.86 percent from its previous close Friday at 4,355.45 points.
Indian equities took their cue from four key Asia-Pacific markets which returned to the green Monday after witnessing the worst ever week of mauling last week.
While Asia’s largest stock market in Tokyo was closed Monday for a public holiday after slumping 24 percent last week, Hong Kong opened 2.4 percent up, rebounding after its steepest weekly decline in a decade.
Australian shares were almost five percent up in the morning session after the government announced plans at the weekend to guarantee bank deposits, sending shares in the financial sector sharply higher.
In a bid to shore up the market, Australia’s central bank also pumped A$2.85 billion (US$1.9 billion) into the financial system to ease the grinding liquidity crisis.
The benchmark S&P/ASX 200 was up 4.8 percent to 4,153.8 at noon with financials and mining shares leading Asia-Pacific’s second largest market upwards.
The Hang Seng index of the Hong Kong stock market was up 3.24 percent at 10.30 am Indian time, the Seoul Composite index of South Korea’s Seoul Stock Exchange was up 2.38 percent and the Strait Times index of the Singapore stock exchange was up 1.99 percent.
The morning pep talk by Chidambaram also lifted spirits. Addressing a press conference minutes before the markets opened, the finance minister told reporters there was “no reason at all” for people to “act in haste or give room to panic”.
Pointing out that the Australian and two of the east Asian markets had opened on a positive note Monday, Chidambaram hoped the Indian equities markets would do the same.
Analysts said the worst seemed to be over and they expected the India equities markets to continue to rally during the rest of the day.