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Markets buoyant, Sensex up 744 points

Markets buoyant, Sensex up 744 points
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First Published: Fri, Oct 31 2008. 05 16 PM IST
Updated: Fri, Oct 31 2008. 05 16 PM IST
PTI
Mumbai: Extending gains for the third day in a row, stock markets today staged an impressive come back rally with the benchmark Sensex closing the day higher by nearly 750 points on brisk buying by funds.
Marketmen said slew of favourable factors boosted investor sentiment which was at its lowest ebb after sustained heavy selling in bourses across the world for about a month.
The 30-share index settled the day higher by 743.55 points at 9,788.06, after opening strong and even posted a gain of over 825 points during intra-day.
The wide-based National Stock Exchange index Nifty also rose by 188.55 points at 2885.60.
Brokers said besides a fall in inflation to below 11%, anticipation of rate cut by the central bank revived invesotrs’s interest in buying as they feel that both lower lending and inflation rates bode well economic growth.
Inflation has come down to 10.68% for mid-October. Besides, US central bank Federal Reserve and the Bank of Japan have massively cut rates, prompting many to believe that RBI will follow suit.
Rating agency Standard & Poor’s reaffirming stable outlook for India also intensified buying support, they said.
Analysts said the bellwether index still recovering from the 23% massive drop it has seen this month, the most on record, which saw the Sensex pluning below 8,000 level.
IMG decision to almost double borrowing limits for emerging markets and waive demands for economic austerity measures also helped turn around the sentiments on bourses.
The rally came after a day’s break, when the MSCI Asia Pacific Index added 9%, after the US Federal Reserve cut interest rate by 0.50 basic points and agreed to provide $30 billion each to central banks in Brazil, Mexico and South Korea.
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First Published: Fri, Oct 31 2008. 05 16 PM IST