Sensex gains 205 points, Satyam up 9%
The Bombay Stock Exchange benchmark Sensex today recorded a gain of 204.60 points to end the day at 9,533.52.business Updated: Dec 29, 2008 17:38 IST
Recouping from its early losses, the Bombay Stock Exchange benchmark Sensex on Monday recorded a gain of over 200 points to cut the four-day losing streak on fresh buying in banking, metal and oil and gas shares amid a surge in other Asian bourses.
Marketmen said buying got a boost after some PSU banks today announced a cut in interest rates. They said more are expected to cut interest rates in order to buoy the economy.
The market opened weak with the bellwether index shedding nearly 140 points due to year-end considerations amid a mixed trend in other Asian markets.
With Punjab state-run Punjab National Bank and Bank of Baroda announcing interest rate cuts, the Sensex recouped by mid-session and went to post an impressive gain of 204.60 points to end the day at 9,533.52.
National Stock Exchange index Nifty also gained 64.95 points at 2922.20.
The market also got support from reports of recovery in other Asian bourses after the European exchanges started on a promising note.
Punjab National Bank, Bank of Baroda and Dena Bank said interest rate cuts up to 125 basis points from January 1 which lifted the buying sentiment. Besides, private sector lender ICICI Bank also said it would cut rates by January next year.
Banking stocks hogged limelight and the sectoral index closed higher by 3.71 per cent at 5404.61.
Blue-chip ICICI Bank spurted by 6.35 per cent at Rs 444.50, State Bank of India 2.21 per cent at Rs 1271.77 and HDFC Bank by 3.13 per cent at Rs 1003.05.
Despite courting fresh controversies, IT major Satyam notched up 9.41 per cent gain at Rs 148.25 to emerge as the biggest gainer among Sensex stocks. Brokers said the surge in Satyam was in line with a recovery in its shares in the US.