Stock markets bounce back

Stock markets bounce back
Business Standard, November 5, 2009, Page 1

BS Reporter / Mumbai

Stimulus assurance, global cues pull back Sensex, Nifty.

Stocks rose the most in three months, snapping the Bombay Stock Exchange Sensitive Index’s biggest losing streak in a year, after Finance Minister Pranab Mukherjee said the government will not withdraw stimulus measures.

Global cues were also positive. Asian bourses had a field day and India turned out to be the top performer. European markets traded firm and the Dow futures are also exhibiting strength, ahead of the Fed's policy statement later in the day.

Siddharth Bhamre, head - investment advisory and derivatives, Angel Broking, said, "Today's rally was driven by decent global cues and short-covering activity. The bounce-back could take the Nifty to the 4800/4850-levels.

Tentative and volatile to begin with, the markets picked up steam soon enough today. While the Nifty ended at well above the 4,700-mark, the Sensex closed just shy of the 16,000-mark.

The Sensex ended at 15,912, stronger by 507 points, or 3 per cent, more than making up for the previous day's losses..

There was broad-based buying in index heavyweights. Reliance alone catapulted the Sensex by more than 113 points, while Infosys contributed 64 points and ICICI Bank 60-points. All sectoral indices ended in the green, led by realty, metal and IT stocks.

The stocks in the limelight were Jaiprakash Associates (stronger by 9 per cent at Rs 212), Hindalco (higher by 9 per cent at Rs 119) and DLF (up 8 per cent at Rs 365). Sterlite gained 6 per cent at Rs 770, Reliance added 5 per cent at Rs 1,840 and Tata Steel put on 5 per cent at Rs 1,920.

Sun Pharma, Grasim and Tata Power were laggards, shedding up to 1 per cent at Rs 1,375, Rs 2,167 and Rs 1,307 respectively.

The market breadth was strong. Out of 2,778 stocks traded on the BSE there were 1,770 advancing stocks and 950 declines.