Sensex up by 210 pts on firm global cues

Heavy buying in key counters from refineries, metals and banks helped the benchmark Sensex to bounce back with a vengeance by going up 210 points, 2.31 per cent, and close at 9,300.86 on the back of firm global cues amid hopes of tax sops in the forthcoming interim budget.

The recovery was so strong that all the sectoral indices ended with gains while only two out of the 30 Sensex shares registered losses at close.

Traders expect tax cuts in the forthcoming interim budget, to be announced on February 16, to boost the sagging economy and bring relief to industry. Today the government hinted at fiscal sops in the vote-on-account.

The Bombay Stock Exchange 30-share Sensex was in positive terrain throughout the day.

On Thursday, it was down by 110.97 points or 1.21 per cent.

The broader 50-issue Nifty of the National Stock Exchange also recouped by 63.05 points or 2.27 per cent to 2,843.10 from its last close.

Asian indices ended with gains between 0.63 per cent and 3.97 per cent while European markets resumed better on the back of a smart rally on Wall Street on Thursday night on expectations that the US administration will provide a boost
to the sagging financial sector.

Market participants are looking at the US Senate debate in Washington on the over USD 900 bn stimulus package later in the day to boost the financial system and inject confidence in investors.

Among index-based shares, Ranbaxy Lab spurted 7.08 per cent, Grasim Ind 6.57 per cent, Tata Motors 4.64 per cent, RIL 4.41 per cent, ICICI Bank 4.09 per cent, TCS 4.04 per cent, REL Infra 4.02 per cent, Bharti Airtel 3.00 per cent, M&M 2.77 per cent and ONGC 2.40 per cent.

However, Hindustan Unilever declined 1.02 per cent and DLF 0.86 per cent.

Reflecting the rally in refinery, metal and banking counters, the BSE-Oil&Gas index shot up by 200.30 points or 3.27 per cent, the BSE-Metal by 150.74 points or 3.04 per cent and the Bankex by 115.57 points or 2.49 per cent.

The market breadth turned positive as 1,458 shares ended with gains while 1,003 with losses on the BSE.

The trading volume was at Rs 2,742.58 crore from Rs 2,589.37 crore on Thursday. RIL continued to be most active share with the highest turnover of Rs 237.43 crore followed by United Spirits (Rs 111.86 crore), Educomp Sol (Rs 109.25 crore), REL Infra (Rs 97.23 crore) and DLF Ltd (Rs 86.52 crore).

The BSE-100 index also went up by 100.20 points or 2.17 per cent to 4,719.80 from 4,619.60 previously.