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Sensex rebounds past 18K

business Updated: Feb 15, 2011 02:54 IST
HT Correspondent
HT Correspondent
Hindustan Times
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In line with the strong rally in the Asian stock markets, the Bombay Stock Exchange benchmark Sensex rose by 2.7% on Monday, the highest single-day rise in nine months in percentage terms, to regain the psychologically-important 18,000-point mark.

The 30-company index ended the day at 18,202 points or 473 points above the previous close.

The broader Nifty at the National Stock Exchange rose by 2.7% or 146 points to close at 5,456 points on Monday.

“There has been some value buying in the market but short covering happened as traders exited short positions they built over the past few trading sessions,” said Pankaj Pandey, head of research at ICICI Securities.

Experts predict volatility in the coming days as negative news flow continues to come in.

“Markets can’t ignore the bad news,” said Pandey.

Runaway food prices and interest rates continue to be a near-term cause for concern.

Monday’s turnaround did not reflect in the behaviour of FIIs, which continued to exit the Indian markets. The net FII outflow on Monday was R434 crore. The net FII outflow so far in 2011 is R7,394 crore.

The surge in the Indian market that was driven by gains in capital goods, auto and metal sector, followed the gains in China, Hong Kong and Japan in the first trading session after the Egyptian crisis ended on Friday evening.

The oil & gas index was the weak link in Monday’s rally, rising just 1%. Reliance Industries and ONGC, the two largest entities in Sensex, rose just 0.5% and 0.7% respectively.