Sensex crosses 10,000-mark, market rally gathers steam (Roundup)

March 26th, 2009 - 7:07 pm ICT by IANS  

Sensex Mumbai, March 26 (IANS) The rally at Indian equities markets gathered steam Thursday as traders scampered to cover their positions, resulting in a key index shutting shop above the psychologically important 10,000-mark.
The 30-scrip Bombay Stock Exchange (BSE) sensitive index (Sensex), which opened at 9,739.93 points, ended at 10,003.1 points - a rise of 335.2 points or 3.47 percent from its previous close.

Similarly, the S&P CNX Nifty of the National Stock Exchange (NSE) gained 3.28 percent from its last close to rule at 3,082.25 points.

The BSE midcap index was ruling 1.16 percent higher, while the BSE smallcap index was up 0.69 percent.

“I wish it was a permanent recovery, but it’s not. It might appear as if this rally is sustainable but I doubt it very much. The futures and options closing was much stronger than expected, which pushed the Sensex upwards,” said Jagannadham Thunuguntla, equity head with SMC Capital.

“The fact is that markets are just reacting to the $1-trillion package that has been announced by the US administration. But they will soon fall back,” Thunuguntla added.

Of the 13 sectoral indices on the exchange, the indices for consumer goods, power and metal stocks ended in the positive terrain, while realty stocks saw profit booking.

Gainers of the 30 composite Sensex were led by Tata Motors, up 7.94 percent at Rs.172.70; L&T, up 6.1 percent at Rs.661.35; Sterlite Industries, up 5.97 percent at Rs.368.10, and TCS, up 5.94 percent at Rs.557.15.

There were only three losers on the Sensex: Ranbaxy, down 2.95 percent at Rs.157.95; DLF, down 0.31 percent at Rs.176.10, and ACC, down 0.28 percent at Rs.560.40.

However, the overall market sentiment was still mixed, with 1,392 stocks advancing, 1,138 scrips declining and 106 remaining unchanged.

In Asian markets, key indices surged as the US presented a rosier picture of rising demand in sectors like housing and long-lasting goods such as machinery and computers.

The Hang Seng, a key index of the Hong Kong Stock Exchange, ended trade 3.57 percent or 486.87 points higher at 14,108.98 points, while a key Japanese index, the Nikkei, closed 156.34 points in the green at 8,636.33.

European markets, which came online before Indian bourses ended trade, were ruling marginally in the green with the FTSE in Britain trading 7.11 points higher than its previous close, and its German peer, DAX, trading in the positive terrain, 18.38 points higher.

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