The Bombay Stock Exchange benchmark index Sensex today recovered from its six-week lows, gaining 91 points on firm global cues and on emergence of brisk buying by funds in key sectors like metals and PSUs among others.
The 30-share bellwether Sensex initially touched a high of 16,738.12 but pared some of those gains to end at 16,692 points, posting a net rise of 90.80 points or 0.55% from its previous close of 16,601.20. The Sensex had shed 312 points or 1.84 % in last three sessions alone.
The market snapped its three-day losing streak on renewed demand in key sectors like metals, PSUs led by banks, realty, and telecom counters on the back of news of higher advance tax payments by leading corporates,helping the markets to rebound. The rally was still limited to a handful of stocks like metal heavy weight Tata Steel and Hindalco, realty leader DLF and telco Bharti Airtel, which all gained close to 4% each.
Similarly, the wide-based National Stock Exchange index Nifty 50 also rose by 33.25 points to close at 4,985.85 after touching an intra-day high of 4,997.30.
However, marketmen are not very enthused about this and are cautious saying this renewed interest is temporary and driven by the massive fall in the previous days, especially on the metals counters.
Ashika Stock Brokers research head Paras Bothra said, "today's rally was purely a reflection of the global markets which were holding up.
"Yesterday the metal stocks were hammered down quite a lot. This brought in a kind of rebound in the sector today. The rally is basically a one-day kind of an activity, devoid of any fundamental reason." In Asia, most of the indices ended in the green following overnight jump on the Wall Street. Hang Seng, Nikkei, Kospi, Strait Times and Taiwan Index rose by about 0.60% to 1.91%, while Shanghai fell by 2.32%.
The Dow Jones Industrial Average and the Nasdaq firmed up by 85.25 points and 25.97 points yesterday respectively.
Similarly, following the overnight rally on the American bourses, the European markets also opened higher today in morning deals. The FTSE was up by 0.54%, CAC by 0.45% and the DAX by 0.28%.
The metal stocks were back in demand following reports of the base-metal prices shooting in London, on expectations of a pick up in demand driven by the global recovery. The telecom counters gained smartly following Government statement that
the spectrum auction would go ahead as planned on January 14.
Reflecting the rally in sectoral stocks, the BSE-Metal index spurted by 457.75 points or 2.87%, BSE-PSU index by 144.40 points or 1.59%, BSE-Realty by 55.38 points or 1.51%, Bankex by 110.62 points or 1.16% and the BSE-Power by 29.79 points or 1.00%.
Among the top gainers from the Sensex pack, Tata Steel flared up by 3.97%, Bharti Airtel by 3.84%, Hindalco by 3.65%, NTPC by 3.27%, ICICI Bank by 1.95%, RCom by 1.57%, DLF by 1.47% and Hero Honda by 1.20%.
Against this foreign institutional investors sold shares worth Rs291.94 crore yesterday as per provisional figures while domestic institutional invesotors bought stocks to the tune of Rs353.83 crore.
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