Sharpest single-day gain for Sensex

Sharpest single-day gain for Sensex

Mumbai: The Sensex on 14 November ended with a gain of 4.69% as global markets rallied after stronger than expected earnings from retail giant Wal-Mart and a sharp drop in crude oil prices, dealers said.

The benchmark 30-share index rose 893.58 points, or 4.69%, to close at 19,929.06.

This was the sharpest single-day point gain for the Sensex, which had slipped over 6% last week.

The previous best single-day gain was 878.8 points on 23 October.

The National Stock Exchange’s Nifty rose 242.50 points to 5,937.90 in line. It touched a high of 5,950.20 and a low of 5,700.05 points.

Reports that Left parties may allow the government to negotiate India-specific safeguards with the International Atomic Energy Agency required to operationalise the nuclear deal with the US also boosted sentiments, brokers said.

Investors will now watch for monthly US retail sales data due later today to assess consumer spending patterns ahead of the crucial holiday shopping season in the world’s biggest economy.

Buying was strong in capital goods, banking, metal and oil stocks.

Reliance Industries, Larsen & Toubro and ICICI Bank were among the major gainers today.

“I was never bearish, there is a clear long-term growth story for India. Some people lost the plot (on emerging markets) due to the subprime concerns," said Andrew Holland from DSP Merrill Lynch.

“The markets showed fresh resurgence on global clues. With credit concerns easing and earnings growth estimates strong, we expect the markets to hit record highs again," said Naresh Garg, the chief investment officer with Sahar Mutual Fund.

Mid-day consolidation

Sensex today zoomed by nearly 715 points at mid-session on brisk buying by funds in heavy-weight stocks in metal, banking and capital goods sectors.

The Sensex, which commenced the day on a cheerful note, gathered further momentum and surged 715.49 points to 19,760.97 at 1300 hrs.

The broader National Stock Exchange’s Nifty shooted up by 201.90 points to 5,897.30 as buying pressure rose following reports of a steep rise in other Asian markets such as Japan and Hong Kong.

Reports that Left parties may allow the government to negotiate the India-specific safeguards with the IAEA required to operationalize nuclear deal with the US also boosted the trading sentiments, brokers said.

The government has reconvened a meeting of the UPA-Left committee on 16 November when a view is expected to be firmed up on the issue.

Morning surge

Mumbai: Powered by a strong turnaround in global markets, the bulls lifted the benchmark Sensex by 590 points during morning trade today.

Encouraged by positive political news and strong global cues, bulls strengthened their grip on the markets, making across-the-board purchases in early trade.

After opening sharply up at 19,336.96 the BSE barometer raced to a high of 19,625.43, a rise of 589.95 points, over previous close of 19,035.48.

However, later the Sensex fell marginally due to profit selling and was quoted at 19,506.17 at 1030 hours.

The wide-based National Stock index, Nifty, also spurted by 169.85 point to 5,875.25.

It surged by 139.15 points to 5,834.55 at 1030 hours from yesterday’s close of 5,695.40.

The stock markets welcomed the Left’s stand to allow the UPA government to proceed on discussion with the IAEA.

The Wall Street also reported a sharp rally yesterday. The Dow Jones Industrial Average last night jumped by 319.54 points or 2.46% and the Nasdaq Composite Index gained 89.52 or 3.46%, its biggest point gain since May 2002.

Asian indices too recorded sharp gains in early trade on the back of American rally.