Markets in festive mood, Sensex up 384 points

Bombay Stock Exchange

Markets witnessed frantic rally soon after the news of 10.4 per cent growth in industrial output, the highest in 22 months, came out. Brokers said atmosphere was euphoric with a slew of goods news adding to the festive cheer.

The Bombay Stock Exchange benchmark index, Sensex, opened on a strong note after Anil Ambani yesterday extended an olive branch for peace with elder Mukesh Ambani, fuelling investor hopes of an end to one of the most intense corporate battles.
The market also got support from Prime Minister Manmohan Singh's statement that the economic growth will accelerate.
Brokers said investors, fortunes of many of them are tied up with frims run by Ambani brothers, cheered the development.
Brokers said while the latest in Ambani episode gave the push, what propelled the market to 17,000-level was 10.4 per cent industrial growth which had beaten expectations.
"Backed by good IIP figures, positive news on Reliance front drove the market. Among the top 20 gaines in F&O segment in Nifty, four were from Reliance pack-- Reliance Infra, RNRL, RelCap and Adlabs. It is not easy to say that Ambani dispute will soon be over but at least some steps are taken towrdas it and that gave a positie boost ot the markets, said SMC Global Vice-president Rajesh Jain.
The 30-share index finally setteld the day at higher by an impressie 384.01 points or 2.31 per cent at 17,026.67.

The broad-based 50-issue Nifty of the National Stock Exchange too flared up by 109.05 points or 2.21 per cent to end past 5K-mark to a week-high of 5,054.25 from last close.
The market sentiment got a further boost after Finance Minister Pranab Mukherjee remarked after a good industrial growth that it is a recovery process from the earlier slowdown and possibly there could be some higher growth projection,
The buying was so strong that all sectorial indices ended in the green by about 3.72 per cent and 0.95 per cent. 27 out of 30 index-based counters registered sharp to moderate gains.
From the Sensex family, Mukesh Ambani-led RIL surged 3.19 per cent. SBI was the best gainer at 5.16 per cent, closed followed by REL Infra at 5.00 per cent. IT stocks Wipro and TCS gained 3.79 per cent and 3.36 per cent.
Among Ambani group companies, barring RCOM, all ended significantly higher in the range of 4-5 per cent. RNRL, which is seeking RIL's K-G D6 fields at USD 2.34 per mmBtu, surged a hefty 5.30 per cent.
On the basis of use-based industrial break-up, consumer durables production grew by 22.3 per cent in the August.
As a result, the BSE-consumer durables index was the best performer among the sectorial indices at 3.72 per cent. IT index spurted 2.94 per cent and he Bankex 2.63 per cent.
The market breadth turned strong as 1,627 stocks ended with gains against 1,108 that finished with losses on the BSE.
Despite strong surge in the sensex, the trading volume dropped further to Rs 5,284.64 crore from Rs 6,018.94 crore on last Friday. RIL was the top traded scrip with the highest turnover of Rs 343.79 crore.

Liked the story?

  • 0

  • 0

  • 0

  • 0

  • 0