The stock market on 19 March advanced higher on the back of firm Asian cues that helped push the benchmark Sensex up by 215 points, while shrugging off concerns about inflation pressure and slowdown in FII inflows.
The benchmark Sensex bounced back on revival of buying by funds in heavy-weight stocks such as Reliance Industries.
The trading volume, however, indicated very low investor participation after the market’s worst performance during last week on the back of global events as well as rising inflation and interest rates at home.
Riding on the widespread surge, the Bombay Stock Exchange (BSE) bellwether opened strong at 12,484.64 and rallied to the intra-day high of 12,655.00 before ending the day at 12,644.99 a net rise of 214.59 points or 1.73 % over Friday’s close of 12,430.40.
The Sensex had fallen by 455 points or 3.5% during last week.The broader S&P CNX Nifty of the National Stock Exchange (NSE) also recovered by 70.35 points or 1.95 per cent to close at 3,678.90 from last close of 3,608.55.
Foreign Institutional Investors (FIIs) as also domestic mutual funds were seen making purchases at the lower levels.Brokers attributed fresh buying support to the current levels which provided attractive investment opportunities.
Though Asian markets seemed stable, inflation has been a major concern among investors as it remained well above the RBI’s target of 5.5 % since October and touched a high of 6.73 % in the week ended 3 February .
Japan’s Nikkei ended 265.40 points up, Hong Kong’s Hang Seng 313.24 points, Singapore’s Straight Times 44.64 points and South Korea’s Kospi 15.51 points.