Global bourses saw a bull raid on Friday after the US government's plan to rescue ailing banks boosted investor sentiments, and domestic indices were no exception. The benchmark Sensex of the Bombay Stock Exchange extended Thursday’s smart recovery, this time with renewed vigour. It closed 726.72 points or 5.46 per cent higher at 14,042.32 points. The wider Nifty of the National Stock Exchange gained 5.13 per cent to end the day at 4,245.25.
However, with global economy still apprehensive of more negative news from the US, the rebounce does not look like one sustainable. "The foreign institutional investors are still in a sombre mood," said Naresh Kothari, president, Edelweiss Securities. “The bounce back drives its strength from the news that about $200 billion has been injected into the financial system by central banks over the globe. This seems to be a time-specific move."
Foreign institutional investors remained net sellers of Indian paper worth Rs 6,995.70 crore in September till Thursday, according to the data available at the Securities and Exchange Board of India website.
The bounce back showed strength with 1,888 stocks on the BSE advancing against 740 declines. The BSE Realty index that had been battered ever since the tremors of US crisis hit the Indian shoreline lead today's rally and jumped 7.59 per cent to end at 4,102.64. The BSE Information Technology index followed as the recent appreciation of the dollar against the ruppee brightened the outlook for companies in the sector.