Sensex back in 17, 000 region; RIL up 2%

Snapping the two-day losing string, the Bombay Stock Exchange benchmark Sensex today surged by over 240 points to regain the 17,000-level, with investors reposing confidence in Indian shares amid distinct weakness in Asian and European bourses.

Much-battered realty shares were back in favour though debt-ridden Dubai World's real estate arm Nakheel's restructuring raised concerns in Gulf bouses which registered sharp losses. Metal counter also witnessed brisk buying to shrug off yesterday's hefty losses.

"Real Estate stocks have seen a long build-up, suggesting that investors have been taking fresh positions in these stocks," said Bonanza Portfolio assistant vice-president Avinash Gupta.

Heavyweight Reliance Industries, which dipped over 3% yesterday, also bounced back to close higher by 2.33% helping the barometer to notch up the smart gain.

The 30-share Sensex on BSE fell for a while and touched a low of 16,964.11 right after the onset of business. But brisk buying emerged after mid-session lifting the barometer to 17,227.68, an impressive gain of 244.54 points or 1.44% over its previous close.

Marketmen said buying was spread across all counters and all the sectoral indices closed in the postive terrain.

Today's gains more than made up for the 202.54 points markets had lost in the past two days which saw the Sensex losing the psychologically important 17,000-level after days. Telecom giant Bharti Airtel was biggest Sensex gainer at 4.05%. Realty major DLF closed up 3.53% too. Auto major Tata Motors also rose 2.73% after sales increased by 65.49%.

Marketmen attributed today rally to short-covering and said market is expected to continue with the consolidation phase notwithstanding the strength displayed today.

"We will continue to face resistance at the higher levels. Tomorrow's opening will be somewhat positive to sideways," said SMC Global vice president Rajesh Jain.

Globally, barring Singapore which just managed to land in the positive terrain at close, other Asian markets finished in the red between 0.1% and 1.2%. European indices, however, were trading narrowly mixed their morning deals. The 50-issue Nifty of the National Stock Exchange also bounced back by 81.25 points or 1.60 per cent to 5,147.95 from its last close.

Small-cap and mid-cap stocks attracted good retail investors' interest.

The recovery was so strong that all sectoral indices closed in positive terrain. The BSE-Realty index spurted by 125.99 points or 3.27 per cent, the BSE-CD by 79.81 points or 2.29%, the BSE-Metal by 351.11 points or 2.15% and the BSE-Oil&Gas by 177.38 points or 1.73%.

From 30 index-based shares, Bharti Airtel flared up by 4.05%, DLF by 3.53%, Tata Motors by 2.78%, Hindalco by 2.56%, Jaipra Asso by 2.26%, REL Com by 2.25%, Tata Steel by 2.20%, Infosys Tech by 2.10% and REl Infra by 1.87%.

The market breadth turned positive as 1,862 counters ended with gains while only 954 that finished with losses on the BSE.

The trading volume improved to Rs4,968.65 crore from Rs4,763.47 crore on Monday. SBI was the top traded share with the highest turnover of Rs146.79 crore followed by RAIN Commo (Rs131.16 crore), JSW Steel (Rs128.44 crore), Suzlon Energy (Rs122.38 crore) and HDIL (Rs120.58 crore).