Indian stock Markets firm on strong global cues
Sanjay Jha | October 14, 2008 at 12:06 amby
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Indian Equities witnessed across the board buying activity as sentiments turned bullish after governments across the world tried to keep financial systems running by injecting fresh liquidity.
The markets are firm in the early deals on Tuesday with the BSE Sensex gaining 480 points to trade at 11,794 levels. The Nifty is up 4 per cent to 3630 levels.
“The markets may remain volatile in a broad range. The Nifty could be range bound between 3300-3800 levels,” said T S Harihar, Senior Vice President, ICICI Securities. He however maintained that a robust order book in capital goods is a key positive for stocks.
Heavy buying has emerged in capital goods, realty and IT stocks. The realty index on the BSE has advanced 5.9 per cent to 2921 levels. The IT index and capital goods index have also gained more than 5 per cent each.
“ Yesterday’s rally was largely due to short covering. This is a grossly oversold market so more short covering may be in store,” said Deven Choksey, MD, K R Choksey Securities.
Among the Sensex scrips, Wipro is the biggest gainer, up over 10 per cent. Other major gainers are L&T, Satyam Computers and ICICI Bank.
The Wall Street stormed back after its worst week ever and staged the biggest single-day stock rally since the Great Depression on Monday, catapulting the Dow Jones industrials to a 936-point gain and finally offering relief from eight consecutive days of stock market carnage.
The Dow gained more than 11 percent, its biggest one-day rally since 1933, and by points it shattered the previous record for a one-day gain of 499, during the waning days of the technology boom in 2000.
Key Asian indices are trading firm today. Japan’s Nikkei has surged 13.6 per cent to 9400 levels while Hong Kong’s Hang Seng and South Korea’s Kospi have gained more than 4.4 per cent each. The Singapore Nifty is also up nearly 5 per cent.
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