Sensex bounces back by 356 pts on rise in IT & metal counters
The BSE benchmark Sensex recovered by 356 points this week to end at 19,864.85, following rise in IT and metal counters on the back of easy liquidity measures announced by RBI coupled with hectic shortcovering amid higher global advices.business Updated: Dec 18, 2010 13:17 IST
Stocks: The BSE benchmark Sensex recovered by 356 points this week to end at 19,864.85, following rise in IT and metal counters on the back of easy liquidity measures announced by RBI coupled with hectic shortcovering amid higher global advices.
The Reserve Bank of India (RBI) announced measures to ease liquidity in the banking system, while keeping the key policy rates unchanged in its mid-quarter policy review.
The RBI said the underlying growth momentum of the Indian economy remains strong and also said that even as inflation has moderated, it remains significantly above comfort level.
Higher advance tax payments for the third quarter by some of the companies also boosted the market sentiment.
Small-cap and mid-cap shares also showed retail investors interest after recent heavy sell-off on suspected manipulation in select scrips.
Wholesale price based inflation for November dipped to 7.48% from 8.58% in the previous month, fading fears of a rise in key interest rates by the apex bank in near term. Finance Minister Pranab Mukherjee said the headline inflation would be around 6% by March 2011.
World markets rose after Beijing refrained from raising interest rates over the weekend. US stock benchmarks extended gains to a third-straight week, following upbeat reports from Oracle Corp and Research in Motion Ltd.