Sensex over 200 pts up on confidence from Citi rescue

Sensex over 200 pts up on confidence from Citi rescue

Mumbai: The benchmark Sensex soared by about 280 points in the opening trade after global markets staged a stellar rally following the bail out of troubled banking giant Citigroup by the US government.

The Bombay Stock Exchange barometer, which had closed flat on Monday, surged by 279.68 points, or 3.14%, to 9,182.80 in the early trade with all sectoral indices trading in the positive zone.

The wide-based National Stock Exchange’s Nifty rose by 82.45 points, or nearly 3%, at 2,790.70 points.

Marketmen said that stellar gains in the Asian markets on Tuesday following the overnight rally in the US stocks after a government rescue of Citigroup bolster the sentiments in the domestic market.

Banking stocks registered gains up to 5% as the bail out of Citigroup calmed fears of another financial turmoil, they added.

Shares of country’s largest state-run lender SBI jumped by Rs14.55, or 1.27%, at Rs1,161.85, ICICI Bank by Rs14.50, or 4.50%, at Rs337.05 and HDFC Bank gained Rs42.15, or 5.07%, at Rs873.70.

Other counters which supported the Sensex were Reliance Industries, BHEL, Larsen and Toubro, Infosys Technologies, Tata Consultancy, Wipro and Tata Power.

On Monday the US Dow Jones Industrial Average closed higher by 4.93% while London’s FTSE gained 9.84%.

Among Asian stock exchanges, Hong Kong’s Hang Seng rose by 4.58%, while Japan’s Nikkei surged 4.25% in early trade on Tuesday.