New Delhi: Markets made up for earlier losses to close at day’s high of more than 2% on Monday after European markets opened positive on easing financial concerns.
The Bombay Stocks Exchange benchmark Sensex began the day flat but positive on firm Asian markets after US banking system picked up. Buying sentiment was boosted after Citigroup, Bank of America and JPMorgan Chase reported profitable first two months in 2009.
Markets soon slipped into volatile territory late morning as global economic concerns still lingered. Indices lost gains made last week, the best sessions since November 2008.
IT and power index faced selling around noon but buying renewed from foreign funds, positive Asia and anticipation of European gains.
The 30-share BSE index opened merely 37 points up then briefly getting choppy. But the Sensex closed 186.93 points up at 8,943.54 and 50-share NSE Nifty ended at 2,777.25 or 58 points higher.
Near closing, strong buying emerged across the board with Realty leading by 5% gains. Other sectors that lifted the market were oil and gas, banking, FMCG and PSU by 3.4%, 2.86%, 2.84% and 2.7% respectively.
Banking stocks gained on rally in bond yield and on hopes that lower interest rates may boost investor sentiments. ICICI Bank surged by 4.52% to Rs322.65 and State Bank of India by 3.65% to Rs987.80.
IT stockholders were hesitant on fears that weak global economy would cut the amount firms spent on technology. Infosys Technologies was among the few losers falling by 0.62% to Rs1,288.25. others outsourcers made moderate gains, Tata Consultancy Services rose by 2.62% to Rs519.80 and Wipro by 1.65% to Rs228.25.
Jaiprakash Associates was the top gainer in the rally, rising by 8.96% to Rs77.25, followed by Mahindra and Mahindra by 8.48% to Rs374.05, Ranbaxy Laboratories by 6.82% to Rs147.95, Reliance Communication Ltd by 6.74% to Rs156.75 and DLF Ltd by 6.16% to Rs161.95.
After previous week’s almost 8% loss following news of a chief executive official selling all his company stocks, Bharti Airtel today rose by 2.37% to Rs571.95 on reports the company will restructure its businesses.
In Asia, bank stocks nudged Japan’s Nikkei up by 1.8% and Hong Kong’s Hang Seng by 3.6% to mark its fifth straight session of gains.