Sensex scales new peak in buoyant market

Sensex scales new peak in buoyant market

World’s six major central banks on Wednesday came together to tame a liquidity crunch for European banks by providing cheaper dollar funding which led to boosting in stocks earlier in the day at D-Street.  They decided to lower pricing on US dollar swaps by 50 basis points from December 5. However, both the key indices of BSE and NSE ended off their day’s highs -- weighed down by a lacklustre opening in European stocks and Dow futures trading lower -- after paring gains to hit fresh intra-day lows in late trade. 

The Sensex at BSE was up 359.99 points or 2.23 per cent to 16,483.45, its highest closing level since November 16, 2011. The index surged 594.65 points at the day's high and rose 307.15 points at the day's low. The 50-unit S&P CNX Nifty was up 104.80 points or 2.17 per cent to 4,936.85, its highest closing level since November 16, 2011. The Nifty hit a high of 5,011.90 and a low of 4,916.70 in intraday trade.

Edelweiss Securities Executive Vice President Vikas Khemani maintains that the rally may not sustain saying: “I think markets are going to see a big reversal from hereon. For India, the problem is a lot more domestic than only global.”  He felt that fundamental problems still need to be addressed.

The market breadth, indicating the overall health of the market, was positive compared with strong breadth earlier in the day with as many as 1691 shares on BSE gained and 1124 shares fell, besides a total of 112 shares remained static. BSE clocked turnover of Rs 1953 crore slightly higher than Rs 1942.16 crore on November 30, 2011. After pulling out over Rs 6,500 crore in last 11 trading sessions, Foreign Institutional Investors (FIIs) turned net buyers, picking up shares worth Rs 139.80 crore as per Sebi data.

Globally, key indices in China, Hong Kong, Japan, Taiwan Singapore and South Korea gained up to 5.63 per cent. European markets were trading mixed on profit-booking.

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