The Bombay Stock Exchange index Sensex made a smart recovery from yesterday's unexpected fall by rallying 230 points today on all-round buying on the back of firm global sentiment and easier FDI norms.
The 30-share barometer once again above the psychological 16,000-mark at 16,152.59, recording a sharp rise of 230.42 points or 1.45 per cent after losing 120 points yesterday.
Tracking strong Asian markets, the Sensex shot up 174 points in opening trade and continued to rally throughout the
day and touched a high of 16,202.87. A strong European opening following Germany and France agreeing to help the debt-laden
Green, further boosted the rally.
Hectic short-coverings ahead of the long weekend also helped the recovery, said market participants. Both the
exchanges, the BSE and the NSE, will remained closed tomorrow for Mahashivratri.
The Cabinet today allowed Foreign Investment Promotion Board to approve FDI up to Rs 1,200 crore, against existing
limit of Rs 600 crore, too helped to turn the corner, as it will further liberalise FDI norms and expedite foreign fund
inflows into the country, said marketmen.
Another sentiment booster was the better exports numbers for January, when the outward shipments rose 11.5 per cent in
a row for the third month. Marketmen said all these flurry of positive news helped the market shrug off the latest food
inflation data which rose for the third week in a row.
The auto, realty, refinery and metal counters saw heavy demand today.