Shares sizzle as buyers go short

Sensex soars 472 points; Asian & European markets also flare up
Last Updated 28 November 2011, 15:48 IST

Trading for the week started on a firm note as pivotals extended gains in late noon trades this day on sustained buying in metal and realty shares.

The market heavyweight Reliance was the top contributor to the bellwether index of BSE and jumped 3.7 per cent to close at Rs 783. Mukesh Ambani-led Reliance Industries has sent an arbitration notice to the Oil Ministry over the move to disallow some of the expenditure RIL has made in the KG-D6 gas fields as punishment for falling output.

The market breadth was strong as all the 13 sectoral indices on BSE were in green.  Even as key indices, Sensex and Nifty rose 3 per cent this day, the Indian rupee too saw some appreciation by 35 paise in short covering this morning and was trading at 51.95 to a dollar.

The popular Sensex at BSE jumped 471.70 points or 3.01 per cent to settle at 16,167.13, its highest closing level since November 18, 2011. The index surged 491.25 points at the day’s high and rose 192.85 points at the day's low.

The 50-unit S&P CNX Nifty at NSE jumped 141.25 points or 3 per cent to settle at 4,851.30, its highest closing level since November 18, 2011. The Nifty hit a high of 4,859.10 in and a low of 4,766.40 in intraday trade.

Kotak Securities'Dipen Shah said “markets staged a smart comeback today after suffering losses last week. Positive Asian markets and talks of some aid for Italy from IMF helped sentiments. However, IMF has clarified that, it was not in talks with Italy. There were also some expectations of some quick solutions to the Eurozone crises from Germany and France, which supported markets.”

Geojit BNP Paribas Securities’ Hormuz Maloo said”it is possible that the short term uptrend has some way still to go on the upside, so one should remain invested for now. However traders should look to sell at slightly higher levels when this short term uptrend shows signs of peaking. ....It is difficult to set any targets for this short term uptrend...”
From broader indices, the BSE Mid-Cap index rose 1.5 per cent and the BSE Small-Cap index gained 1.72 per cent. Both these indices underperformed the Sensex.

BSE clocked turnover of Rs 1902 crore, lower than Rs 2161.33 crore on Friday last. The market breadth, indicating the overall health of the market, was strong with as many as 1,922 shares on BSE gained and 879 shares fell, besides a total of 76 shares remaining unchanged.

Cumulatively, the BSE Sensex has lost 1,537.88 points or 8.68 per cent this month so far.  It has slumped 4,341.96 points or 21.17 per cent in calendar 2011. From a 52-week high of 20,664.80 on January 3, 2011, the Sensex has lost 4,497.67 points or 21.76 per cent. From a 52-week low of 15,478.69 on 23 November 2011, the Sensex has risen 688.44 points or 4.44 per cent.

(Published 28 November 2011, 04:25 IST)

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