Bull battery props pivotals to new peaks

Sensex scales 567 points in buoyant mart
Last Updated 29 August 2011, 15:18 IST

The BSE Sensex jumped 567.50 points or 3.58 per cent to close at 16,416.33 points, which is its highest closing level since August 23, 2011. The index jumped 613.20 points at the day's high of 16,462.03 in late trade and it rose 219.90 points at the day’s low of 16,068.73 in early trade.

The S&P CNX Nifty at NSE was up 171.80 points or 3.62 per cent to settle at 4,919.60 in the day's closing, its highest level since August 23, 2011. The Nifty hit a high of 4,934.40 and a low 4,806.05 in intraday trade.

Third biggest rally

The third biggest rally of 2011 took place on the first day of the week owing to a combination of various factors. One is an optimistic assessment of the US economy from Federal Reserve Chairman Ben Bernanke -- saying the US will look at other tools to stimulate the economy -- on Friday which boosted stocks across the globe this morning and Indian shares were no exception. Second is the end of a standoff between the government and anti-corruption activist Anna Hazare during the weekend over anti-corruption bill, which also aided the rally on the domestic bourses as the BSE Sensex regained the psychological 16,000 mark.

Considering the market was hammered consistently for the last five weeks, it was a hugely a relief rally.  Also, short covering, build-up of fresh longs and positive global cues brought the bulls back on the Dalal Street. “Markets went up because of short covering and value buying. Ben Bernanke’s speech has been viewed positively by the markets,” said Suresh Parmar, AVP – Institutional Head, KJMC Capital Market Services.

The market breadth was strong and all the 13 sectoral indices on BSE were in green.  Scrip wise, Reliance, Infosys and ICICI Bank together, contributed 200 points to the Sensex's upmove this day.

Reliance was up 5 per cent at Rs 756, while ICICI Bank gained 5 per cent at Rs 861 and Infosys climbed up 4 per cent in trades.  

So much so, Reliance reclaimed the numero-uno position in the domestic market capitalisation charts, overtaking ONGC, which was down 1 per cent at Rs 275.

Broader indices wise, the BSE mid-Cap index rose 2.48 per cent and the BSE Small-Cap index gained 2.06 per cent. BSE clocked turnover of Rs 1833 crore, lower than Rs 2375.99 crore on Friday last.

The market breadth, indicating the overall health of the market, was strong with as many as 2,148 shares on BSE rose and 711 shares fell, while a total of 84 shares remained unchanged.

(Published 29 August 2011, 03:35 IST)

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