JOIN USWith bulls in play, buoyancy marks bourses
The bellwether index of BSE jumped 2 per cent, while the 50-unit Nifty of NSE rose 1.87 per cent in the day. The market breadth was strong, with all the 13 sectoral indices on BSE were in Green this day.
Reliance Industries (RIL) extended initial gains, while interest rate sensitive realty and auto stocks rose on hopes a slowing economy could prompt RBI to pause on rate increases this month. Tata Motors jumped close to 7 per cent.
Telecom stocks rose as Telecom & Information Technology Kapil Sibal unveiled a draft of the government's new national telecommunications policy this morning. IT stocks too rose following Sibal said on Friday last that the government is considering offering tax incentives to software exporters once the Direct Taxes Code is implemented in April 2012.
Market analysts attribute the rally of close to 800 points since Friday to upcoming results for the second quarter of FY12. They aver that the market momentum was good and Nifty may scale to 5,000 levels. Sharekhan’s analyst Nandish Patel said, “The momentum will continue and market may test 5,000-5,050 in the coming days,” while Kotak Securities' Head (Technical Research) Shrikant Chouhan said: “....Bias is positive above 4925 levels....Acceleration of uptrend will be witnessed to the levels of 5200 on the close of 5050. Corporate earnings will be the focus for the month. This will provide the further direction for the market.”
The popular Sensex at BSE jumped 324.69 points or 2 per cent to close at 16,557.23, its highest level since September 29, 2011. The index jumped 363.39 points at the day's high in late trade and fell 1.77 points at the day's low in early trade.
The S&P CNX Nifty at NSE was up 91.55 points or 1.87 per cent to settle at 4,979.60 in the day's closing. The Nifty hit a high of 4,991.15 and a low 4,882.05 in intraday trade.
From broader indices, the BSE Mid-Cap index rose 1.36 per cent and the BSE Small-Cap index gained 0.97 per cent.