Samvat 2065: Sensex surges over 498 pts to end above 9k

Samvat 2065: Sensex surges over 498 pts to end above 9k
PTI
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First Published: Tue, Oct 28 2008. 01 00 AM IST
Updated: Wed, Oct 29 2008. 09 11 AM IST
Closing
Mumbai: Shrugging off the global meltdown witnessed in the last few weeks as a bad memory, the stock markets Tuesday commenced trading on a high and positive note with the benchmark Sensex recording over 498 points gain during the hour-long Muhurat Trading.
Aided by the upward trend in global stock market led by Hong Kong which gained 16%, the Bombay Stock Exchange benchmark Sensex, which had been on a long falling streak and plunged nearly 37 per cent in October, bounced back to close 498.52 points higher at 9,008.08. It had touched the day’s high of 9,056.97.
Similarly, the wide-based National Stock Exchange index Nifty shot up by 160.40 points at 2684.60, after hitting the day’s high of 2695.95.
The sensex snapped a four-day losing streak during which it had tumbled by 2,173.83 points or 20.34 per cent to nearly three-year low.
Today’s rally in Diwali Muhurat Trading bucked the trend of Black Diwali for the last five years.
The Sensex had settled 151 points down last Diwali although it recovered nearly half the total in intra-day loss of about 300 points.
Since last Diwali, when the Sensex had stood at 18,907.60 points, the benchmark index has lost about 10,400 points or over 55% while more than Rs40 trillion has been wiped off from the investors’ wealth.
The new Samvat year trading received support from stocks in realty, banking, oil and gas, capital goods metal and auto segments.
Domestic Institutional Investors, which have been sustained net buyers for the past several days, were believed to have made heavy purchases in blue chips.
Indian bourses took a cue from a rebound in Asian and European stocks during the day while the US futures indicated a rally in American stocks ahead of the Federal Reserve’s meeting on the interest rates.
The market sentiment was also boosted by market regulator Sebi’s decision to relax the creeping acquisition norms and to allow promoters to annually raise stake by 5% till their holding reaches 75%.
Among the Asian indices, Hang Seng rebounded by 14.35%, Nikkei by 6.41%, Strait Times 4.14% and Kospi by 5.57%.
The Germany’s DAX was trading higher by 8.78%, France’s CAC by 2.89% and London’s FTSE by 4.23% during the first half of trading.
The broader 50-share Nifty of the National Stock Exchange also spurted by 160.40 points or 6.35% to close at 2,684.60 from its last close.
The market is expected to be volatile on Wednesday in view of the expiry of the current derivative series.
Analysts felt the market is unlikely to stabilise at the current levels due to panic situation and that it is yet to touch its bottom.
The bellwether Sensex, however, has shown the biggest ever yearly fall of 10,549.37 points or 55.35% in the Samvat 2064.
Opening
It was cracker of a Diwali at the Bombay Stock Exchange this evening when the bourse registered a sharp 547-point rise bringing brought back some enthusiasm among investors after last Friday’s bloodbath.
As investors made token deals during the auspicious Muhurat Trading for Samvat 2065, the 30-share barometer of Bombay Stock Exchange, buoyed by a bounce in global stock market, resumed the one-hour special trading session higher by 505.36 points or 5.94% at 9,014.92 over its previous close, halting a four-day free fall in the market.
Similarly, the 50-share Nifty of the National Stock Exchange jumped by 132.35 points or 5.24% to 2,656.55 at 1816 hours from its last close.
Traders said the market was supported by sectors like realty, metal and capital goods.
Indian bourses took a cue from a bounce in Asian indices and European indices during the day while the US futures indicated a rally ahead of the Federal Reserve’s meeting on the interest rates.
Among the Asian indices, Hang Seng rebounded by 14.35%, Nikkei by 6.41%, Strait Times 4.14% and Kospi by 5.57%.
The Germany’s DAX was trading higher by 8.78%, France’s CAC by 2.89% and London’s FTSE by 4.23% during the first half of trading.
Analysts, however, felt the market is unlikely to stabilise at the current levels due to panic situation and that it is yet to touch its bottom.
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First Published: Tue, Oct 28 2008. 01 00 AM IST