Thursday, November 18, 2010

Global market recovery lifts Sensex, ends 65 points up

MUMBAI: In a highly choppy trade, the stock market today ended with a gain of 65 points in the benchmark index, Sensex, powered by recovery of its global peers and buying in the heavy-weights amid easing inflation.

Despite opening firm, the Bombay Stock Exchange's 30-share index, Sensex, witnessed an extremely volatile session and finally managed to settle with a gain of 65.50 points or 0.33 per cent at 19,930.64.

Similarly, the National Stock Exchange's wide-based Nifty too saw a similar trend and finished at 5,998.80, reflecting a gain of 10.10 per cent from previous close.

Marketmen said that hopes of easing Ireland's debt crisis after it accepted the bailout offered by EU and IMF, led to the rebound in the European and Asian markets, which fuelled the rally on the Dalal Street.

Back home, fall in food inflation to 10.3 per cent for the week ended November 6 helped in the upswing.

Metals saw a handsome recovery and emerged as the best performer among the 13 sectoral indices with the aluminium giant Hindalco and the copper producer Sterlite Industries gaining 4.86 per cent and 2.69 per cent respectively.

"The markets around the globe have recovered from the lower levels with the recovery seen in the commodity space as well, due to which buying interest was seen primarily in the metals and oil marketing companies," said Geojit BNP Paribas in a note.

IT bellwether Infosys Technologies, which enjoys the maximum weightage on Sensex after RIL, contributed the most to the broader market recovery with a gain of 1.07 per cent at Rs 3,004.15.

Besides, the auto giant Hero Honda soared by 5.46 per cent, coming out as a winner, on the news of a foreign brokerage upgrading the stock from 'neutral' to 'outperform'.

"The speculations about the private equity players meeting the company's promoters to clinch a deal, also fuelled the rally in the stock," CNI Research CMD Kishore P Ostwal said.

The country's largest car maker Maruti Suzuki and the auto major Tata Motors too rose by 2.09 per cent and 2.02 per cent respectively. Mahindra & Mahindra also witnessed a gain of 0.31 per cent.

Of the 30 Sensex components, 19 ended the day on a smart note, while the rest finished in the red with Reliance Communications shedding the most on 2G spectrum probe concerns.

However, another telecom giant Bharti Airtel bucked the trend and surged 3.77 per cent on value buying in the stock.

Besides RCom, another major laggard was the private sector lender ICICI Bank with a loss of 3.14 per cent, which suffered on the media reports that the bank is under RBI scanner for its deal with Indiabulls Real Estate (IBREL).


Read more: Global market recovery lifts Sensex, ends 65 points up - The Times of India http://timesofindia.indiatimes.com/business/india-business/Global-market-recovery-lifts-Sensex-ends-65-points-up/articleshow/6947826.cms#ixzz15dpkhof0

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