Bulls blaze back into action on BSE

The BSE benchmark Sensex surged by 365 points on Wednesday, the best gain in over two weeks, as investors rushed to pick up stocks at lower levels. The Indian stock market was the leading performer in Asia, with the 30-share barometer closing the day 2.28 per cent, or 365.36 points, higher at 16,387.84 points.

The 50-share Nifty index of the NSE also jumped 2.30 per cent to settle at 4,917.40. Markets all over the world tumbled on Tuesday as concerns over the eurozone crisis got aggravated by Spain’s move to nationalise an ailing bank. Sensex had tanked by over 465 points.

The rebound in domestic markets on Wednesday was a reflection of a solid recovery in world stocks. Asian bourses settled in the green and Europe was also trading higher at mid-session. US markets, too, are poised to open firm, analysts said.

All the sectoral indices of the BSE ended 0.5-3.5 per cent higher. IT, realty, metal and technology shares led the rally.

In the Sensex constituents, 24 companies gained, whereas six scrips ended the day in the red. Index heavyweight Reliance Industries (RIL) also edged higher and the market breadth was strong.

However, traders in Dalal Street maintained that the rebound may be temporary, as withdrawals of foreign funds continued to weigh and the debt crisis in the euro zone persists.  “The day’s rally appears to be temporary as nothing has drastically changed in the world between tuesday and Wednesday, while the situation in Europe and Korea is still worrisome,” KRIS Director Arun Kejriwal said.

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