Sensex up 116 points in early trade
The 30-share index staged a strong comeback at 9,850.39 points, showing a rise of 116.17 points on the back of short-covering by speculators and selective buying by domestic funds.business Updated: Nov 07, 2008 10:49 IST
The benchmark Sensex moved up by 116 points in early trade on Friday, largely on the back of short-covering by speculators and selective buying by domestic funds.
The 30-share index, which opened more than 102 points lower at 9,631.59 points, staged a strong comeback at 9,850.39 points, showing a rise of 116.17 points in early trade after stocks of oil & gas, capital goods, banking and fast moving consumer goods sectors strengthened.
Similarly, the National Stock Exchange's wide-based Nifty index rose by 48.90 points at 2,941.55 after dipping to a low of 2,860.10 points at the outset.
Stock brokers attributed the recovery in select shares to heavy short-covering by speculators at prevailing lower levels. They said sentiments continued to remain distinctly weak on negative global cues.
Among oil & gas stocks, stocks of Reliance Industries, which had been under selling pressure in several sessions in the past, shot up by Rs 35.45, or 3.03 per cent, at Rs 1,207, contributing major support to the Sensex.
ONGC's scrip gained Rs 19.25, or 2.59 per cent at Rs 763.
Country's largest lender, State Bank of India's stocks were up by Rs 16.70, or 1.37 per cent, at Rs 1,232.05.
Other gainers supporting the index were RCom, Reliance Infra, Tata Power, Grasim Industries and Larsen and Toubro.
However, country's leading realty developer DLF Ltd's stocks were under pressure on negative corporate reports and lost Rs 7.95, or 2.93 per cent, at Rs 263.20.
The Dow Jones Industrial Average closed 4.85 per cent down, while London Stock Exchanges' FTSE fell 5.70 per cent.
Among Asian markets, Hong Kong's Hang Seng index was down by 1.65 per cent and Japan's Nikkei shed 3.86 per cent in early trade.