Asian stock soar on global cues

by Sanjay Jha | November 24, 2008 at 10:30 pm

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The Mumbai stock market Sensex opened higher on Tuesday, taking cues from a rally across global markets after the U.S. government's rescue of Citigroup relieved wary investors.Markets surged in the opening trades on the back of overnight gains in the US and firm start to equity markets across Asia. All the 30-components of the Sensex are in the green led by index pivotal like Reliance Industries, ICICI Bank, HDFC Bank and HDFC among the major gainers.

Equities were firm after a gap-up opening as global markets rose after the US government announced bail-out package to rescue banking major Citigroup. All the sectoral indices were in the green led by metals, banks and power stocks. Market may witness some volatility on account of November F&O expiry this Thursday.

“Though stock futures have added 2 per cent OI, the Put Call ratio has seen a mild deterioration. The overall rollover is back to normal levels but the Nifty is falling short. With this background, we do not expect the Nifty to improve to go beyond its tether at 2850. At 2900 call writing for the next month has taken place. Write 3000 call if the 2800 level in the Nifty is reached. Bongaigaon Refinery looks better placed,” said Anagram Stock Broking note.

Asian stocks advanced in the morning trades on the back of a spike in the commodity and financial stocks, following the U.S. government’s rescue of Citigroup Inc.

Asian stocks soared Tuesday after stellar gains on US and European markets as investors welcomed a rescue of US banking giant Citigroup and steps by governments to spur economic growth.

The US government bailout of Citigroup calmed fears of a repeat of the financial turmoil seen in September following the implosion of Wall Street icon Lehman Brothers due to huge losses on toxic mortgage debts.

"The bailout eased risks to the entire financial system," said Hideaki Higashi, strategist at SMBC Friend Securities.

"A sense of relief spread as the rescue plan erased fears of a repeat of the Lehman shock."

Japan's Nikkei index soared 4.24 percent by lunch. Stocks rose 4.8 percent in Sydney, 5.7 percent in Seoul and 4.3 percent in Hong Kong.