Sensex above 10K level, IT stocks surge
The Bombay Stock Exchange benchmark Sensex on Monday regained the vital 10,000 level with IT and banking stocks leading in attracting good buying support.business Updated: Oct 20, 2008 17:35 IST
The Bombay Stock Exchange benchmark Sensex on Monday regained the vital 10,000 level with IT and banking stocks leading in attracting good buying support.
Cutting short the three-day losing spree that saw the bellwether index plunging below the 10,000 mark on Friday, the Sensex bounced back by 247.74 points at 10,223.09.
National Stock Exchange index Nifty also shot up by 48.45 points at 3,122.80.
Marketmen said investors judged the benchmark's three-day, 13 per cent drop as excessive and started buying at existing lower level. A firming trend in global stock markets was also an encouraging factor and helped pushing up share prices, they said.
Infosys Technologies and Reliance Industries, the two stocks which carry over one-fourth weightage on the Sensex, posted handsome gains.
While Infosys closed higher by 7.9 per cent at Rs 1,297.80, its biggest gain since March 25, Reliance Industries rose 5.3 per cent at Rs 1,375, the highest since September 19.
Trading sentiment got a boost by mid-session after the Reserve Bank of India announced a cut in repo rate to benefit borrowers and investors. A reduction in repo rate is expected to result in in cheaper credit.
IT sector index at 8.05 per cent was the biggest gainer aming all indices today.