Sensex trims early gains, ends 197 pts up

Sensex trims early gains, ends 197 pts up

New Delhi: The benchmark Sensex ended up 2.28% on Monday, 8 December, slipping from its early gains after news of small fire at Reliance Petroleum’s new refinery came in.

Markets had opened 400 points higher on heavy buying by funds and retailers encouraged by RBI’s announcement to infuse more liquidity and government’s over Rs30,000 crore stimulus package slowing Indian economy.

The 30-share BSE index closed up 197.42 points at 9,162.62 after rising as much as 5.2%.

The 50-issue NSE index ended 2.63% higher at 2,784.60.

The bullish trade began after the Reserve Bank of India cut key short-term lending and borrowing rates by 100 basis points each and pumped in Rs11,000 crore for housing and mirco industries to accelerate economic growth.

Major gainers of the day’s trade are from capital goods and realty sector.

Top on gainers list was the largest realty developer DLF, which rose by 8.90% to 221.55, followed by Tata Steel that surged 7.40% to 96.

The day opened with all companies trading green and maintained the positive trend. Other gainers were Unitech (7.32%, Rs33), Ambuja Cement (7.01%, Rs58), Cairn India (6.72%, Rs142.85) and Tata Communications (6%, Rs435.65).

Investor confidence was also up by strong rupee and firm Asia trading.

Asia rally was high on economic plans announced by US President-elect Barack Obama and dropping oil prices. Hong Kong share prices closed 8.7% higher and Nikkei at 5.2% closed its highest in a week.