Markets snap losing streak, Sensex gains 464 pts
The BSE Sensex today gained over 460 points to 8,915.21 points on confident remarks of Prime Minister Manmohan Singh that economy would grow at a rate of eight pc.business Updated: Nov 21, 2008 17:24 IST
Cutting short prolonged losses of the past seven days, the Bombay Stock Exchange benchmark Sensex on Friday gained over 460 points on confident remarks of Prime Minister Manmohan Singh that economy would grow at a rate of eight per cent.
After losing nearly 2,100 points, or 25 per cent, in the past seven days to touch the three-year low, the BSE barometer on Friday bounced back to close higher by 464.20 points at 8,915.21.
National Stock Exchange index Nifty also shot up by 140.30 points at 2,693.45.
The Sensex has shed a massive 57 per cent since January after surging to over 21,000 level in the same month. Foreign institutional investors have pulled out Rs 53477 crore this year so far.
Domestic markets had fallen in sync with global bourses which plunged primarily due to looses and write-downs to the tune of one trillion dollars by global financial companies after the collapse of the US mortgage market.
Besides, Singh's optimistic remarks, anticipation of another round of rate cuts by the central bank encouraged investors to buy.
"We have the ability to sustain a growth rate of about eight per cent. And we will do so," the prime minister said at the Hindustan Times Leadership Summit in New Delhi on Friday.
Barring realty major DLF Ltd, Jaypee Associate, ACC and Tata Power, rest of the stocks in 30-share BSE index ended higher on emergence of buying at existing lower levels.