Sensex jumps 358 points on global cues
Sensex rises by 358 pts in early trade, but later shows signs of resistance on squaring off by operators amid negative FII activity.business Updated: May 08, 2008 11:10 IST
Tracking strong surge in global markets, the benchmark Sensex on Thursday rose by 358 points in early trade, but later showed signs of resistance on squaring off by operators amid negative FII activity.
The Dow Jones Industrial Average on Wednesday soared by 2.55 per cent and the Nasdaq Composite Index by 3.18 per cent, while Asian indices were up in a range of 1.75-4.25 per cent in early trade this morning.
Global rally was credited to strong possibility of an interest rate cut in December prompted by comments by the Federal Reserve yesterday.
The Bombay Stock Exchange 30-share Sensex opened sharply up at 19,297.10, a rise of 358.23 points over yesterday's close of 18,938.87. It was, however, quoted at 19,240.71 at 1030 hours.
The Nifty also jumped by 77.50 points to 5,695.05 at 1030 hours from last close of 5,617.55.
Operators were confined to squaring off at the concluding day of the November contract of the Futures and Options (F&O), market players said.
Investors looked optimistic about the future course of market as the market wide rollover reached to about 60 per cent at the end of trading on Wednesday, they added.
Negative activity by Foreign Institutional Investors (FIIs) was the main cause of concern.
FIIs pulled out about Rs 979 crore in equity as per provisional numbers while Domestic Institutional Investors were net buyers to the tune of Rs 332 crore on November 28.