Tuesday close: Sensex bounces back by 298 points
The Bombay Stock Exchange (BSE) barometer soars to the intra-day high of 19,210.48 before ending the day at 19,035.48 points.business Updated: Nov 13, 2007 17:14 IST
The bulls returned to the equity market after six days, as cheaper stocks inspired buying activity that lifted the benchmark Sensex by 298 points.
Trading sentiment was also positively influenced by reports that the Left parties may allow the UPA government to approach the IAEA on safeguards for operationalising the Indo-US nuclear deal.
Touching the day's low of 18,636.21 at the outset, the Bombay Stock Exchange (BSE) barometer later soared to the intra-day high of 19,210.48 before ending the day at 19,035.48, a net rise of 298.21 points or 1.59 per cent over yesterday's close.
The Sensex had fallen by 1,239 points or 6.2 per cent in the last six trading sessions.
The broader S&P CNX Nifty of the National Stock Exchange recovered smartly by 78.30 points or 1.39 per cent to close at 5,695.40 from previous close of 5,617.10.
The mid-cap and small-cap shares attracted brisk activity as investors shifted their attention to these segments in a bid to churn portfolios at the current market levels.
Bulls suddenly began covering short positions at lower levels on hopes of positive activity by Foreign Institutional Investors (FIIs), which have been net sellers so far in November, market players said.
Shares of Bank and Capital Goods were in keen demand. Key bank stocks like SBI, HDFC Bank and ICICI Bank scored huge gains while Capital Goods major L&T flared up by 4.84 per cent.