Pivotals scale new peaks as bulls party

Sensex soars 354 points in buoyant mart

Pivotals scale new peaks as bulls party

US index futures jumped and European stocks rose buoyed by expectations that Greece will receive the next aid tranche from international creditors as well as hopes of Federal Reserve announcing fresh measures to stimulate the economy.

The market nudged higher in opening trade as most Asian stocks reversed initial losses and then extended initial gains. It remained firm in early afternoon trade and then extended gains to hit fresh intraday high in mid-afternoon trade. Thereafter, the market spurted to 1-1/2 week high in late trade, with all the 13 sectoral indices of BSE in positive zone, while the popular Sensex regained the psychological 17,000 level.

The government’s decision to defer the ONGC’s mega Rs 11000 crore follow-on public offer (FPO) too helped ease concerns of the large issue sucking secondary market liquidity. As per the original plan, the FPO was scheduled to open for bidding on 20 September 2011.

Index heavyweight Reliance Industries (RIL) jumped nearly 4 per cent.  Sector wise, IT stocks rose on a weak rupee, while interest rate sensitive banking stocks rose across the board. So is metal and consumer durables stocks which also edged higher as the market breadth was strong.

Kotak Securities’ Vice President Sanjeev Zarbade said: “....The upmove was led by foreign fund buying and global rally on positive news on Greece front. Bringing a sigh of relief to investors, Greece fully paid €769 million in bond coupons due today. CAC and DAX were trading firm between 1-1.5 per cent. Depreciation in rupee attracted buying interest into IT counters, which were among the major gainers. Cairn India was the biggest gainer on Nifty.”

The BSE Sensex jumped 353.93 points or 2.11 per cent to settle at 17,099.28, its highest closing level since September 8, 2011. The index swung between a gain of 390.09 points at the day's high in late trade and 13.34 points at the day's low in early trade.

Market breadth
The 50-unit S&P CNX Nifty at NSE was up 108.25 points or 2.15 per cent to settle at 5,140.20, its highest closing level since 8 September 2011, while hitting an high of 5,149.90 in intraday trade. Broader indices wise, the BSE Mid-Cap index rose 0.9 per cent and the BSE Small-Cap index gained 1.23 per cent.

The market breadth, indicating the overall health of the market, was strong with as many as 1,838 shares on BSE rose and 977 shares fell while a total of 104 shares remained unchanged.  BSE clocked turnover of Rs 2409 crore, higher than Rs 2294.25 crore on Monday.

Meanwhile, during the day at bourses abroad, European stock markets rose buoyed by expectations that Greece will receive the next aid tranche from international creditors as well as hopes that the Federal Reserve may announce fresh measures to stimulate the economy. So, Key benchmark indices in UK, France and Germany were up by 1.23 to 1.95 per cent.

Asian stocks reversed initial losses as key benchmark indices in China, Hong Kong, Singapore, Taiwan and South Korea rose by between 0.16 to 0.94 per cent, while indices in Indonesia and Japan fell by between 0.08 to 1.61 per cent.

S&P, Nasdaq turn negative
Meanwhile, stocks pared their early gains on Tuesday, with the S&P and Nasdaq turning negative, as early enthusiasm over possible stimulus from the Federal Reserve faded, reports Reuters from New York.

The Dow Jones industrial average was down 5.22 points, or 0.05 per cent, at 11,395.79. The Standard & Poor’s 500 Index was down 0.35 points, or 0.03 per cent, at 1,203.74. The Nasdaq Composite Index was down 3.59 points, or 0.14 per cent, at 2,609.24. Wall Street had opened higher as investors waited to see if the Fed’s policy-setting panel would offer aid to a sputtering US economy.

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