Bulls prop markets, Sensex shoot up 455 points


Mumbai : Bulls had a field day at the Indian equities markets Thursday buying stocks across key sectors such as realty, metal, capital goods and energy.

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Global bourses also acted as a prop with expectations growing around the world that the ongoing G20 summit in London would take significant steps to boost demand.

The 30-scrip Bombay Stock Exchange (BSE) sensitive index (Sensex), which opened at 10,107.25 points, rose 446.84 points or 4.51 percent to close at 10,348.83 points.

Similarly, the S&P CNX Nifty of the National Stock Exchange (NSE) gained 4.92 percent from Wednesday’s close to end trade at 3,211.05 points.

The BSE midcap index gained 3.77 percent, while the BSE smallcap index was up 2.91 percent.

“We are now about 30 percent above the bottom level and this is quite a healthy rally, but investors would do good not to get carried away by this sudden burst,” said Jagannadham Thunuguntla, equity head at SMC Capitals.

World leaders reportedly worked through the night to develop guidelines for the global financial market ahead of the opening of the G20 summit Thursday and come up with measures like strengthening the International Monetary Fund.

“All eyes are on world governments now. They have been very generous and efficient in coming up with stimulus packages and as a result some amount of liquidity is returning to the system,” said Thunuguntla.

All but one of the 13 sectoral indices on the exchange turned positive, with the indices for realty, metal and energy stocks gaining the most. FMCG stocks, however, saw some selling.

Of the 30-scrip composite Sensex, 29 scrips were in the green, with the top gainers including DLF, up 15.08 percent at Rs.203.35; Jaiprakash Associates, up 13.23 percent at Rs.96.70; Tata Motors, up 12.84 percent at Rs.202.95; and Reliance Communication, up 9 percent at Rs.196.15.

The sole loser was FMCG major Hindustan Unilever, down 2.49 percent at Rs.230.90.

The overall market sentiment was positive, with 2,014 stocks advancing, 535 scrips declining and 69 remaining unchanged.

In other Asian markets, Tokyo stocks ended in the green with Japan’s benchmark Nikkei 225 Stock Average closing at 8,719.78 points, 367.87 points higher than its previous close.

The Hang Seng, a key index of the Hong Kong Stock Exchange, ended trade a whopping 7.41 percent above its last closing figure at 14,521.97 points.

European markets, which came online before Indian bourses ended trade, slid into the red with the FTSE in Britain trading 3.17 percent higher than its previous close. Its French peer CAC 40 rose 3.52 percent.

Data with market watchdog Securities and Exchange Board of India (SEBI) showed that foreign funds were net investors in equities Thursday, buying $58.20 million worth of shares.

Indian markets will remain closed Friday on account of Ram Navami.