Monday, November 29, 2010

Sensex rebounds after 4-day fall, up 268 pts led by RIL

MUMBAI: Snapping its 4-day weak trend, the Bombay Stock Exchange benchmark Sensex today shot up over 268 points as investors judged the recent fall excessive in view of the sound economic growth outlook and a firm global trend.

The Sensex, which had lost over 820 points in the last four trading sessions following housing scam racket last week, bounced back 268.49 points to 19,405.10 on the back of a steep rise in blue-chip stocks led by Reliance Industries and Ranbaxy lab.

The Sensex has lost 7.6 per cent since reaching all-time high on November 5, on account of 2G spectrum allocation scam and the CBI arrest of eight senior officials of public banks and a private brokering firm on charges of bribery.

The broad-based National Stock Exchange index Nifty also picked up and posted a gain of 78.05 points at 5,830.00.

The upsurge in the market on expectations of better GDP data to be released tomorrow, further supported by a firming trend in the Asian region and higher opening in Europe this afternoon.

Reliance Industries, the most valuable company and heaviest weighted on the benchmark, surged the most since May by adding 3.70 per cent to 998.20. Ranbaxy gained the most in a month, rising 3.84 per cent to Rs 565.75, on reports that it has got US approval to sell Aricept, Alzheimer's treatment drug.

The recently bashed banking and realty stocks were seen recovering on fresh buying by funds in fundamentally strong scrips available at cheaper rates.

The oil and gas sector index was the best performer followed by banking sector, as stocks led by ICICI Bank, State Bank of India and Bank of India ended with gains.

LIC Housing Finance, which had lost significant ground after the break of the lending scam, recovered by 1.72 per cent to Rs 948.10 on renewed interest in buying.

Meanwhile, Money Matters, a company at the centre of the controversy remained under pressure and hit its daily lower limit by losing 10 per cent at Rs 344.30. It has recorded a loss of 50 per cent since the outbreak of the finance racket.

Another firm in trouble after the CBI probe, D B Realty dropped 6.49 per cent to Rs 198 on panic selling.

Read more: Sensex rebounds after 4-day fall, up 268 pts led by RIL - The Times of India http://timesofindia.indiatimes.com/business/india-business/Sensex-rebounds-after-4-day-fall-up-268-pts-led-by-RIL/articleshow/7010481.cms#ixzz16fsaeiXF

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