Taking a cue from global rally, stock markets turned resilient with a bounce in the benchmark Sensex, which on Thursday ended 185 points up at 12,389.41, as foreign funds staged a dramatic comeback amid a possible slowdown in the US economy.
Despite Fed's concerns over inflation, the world markets rallied sharply following the substantial slowdown in the US housing sector, which raised hopes of interest rate cuts in the near future.
The Bombay Stock Exchange (BSE) 30-share sensitive index (sensex) opened firm at 12,299.21 and gradually moved upwards to the intra-day high of 12,415.97 before ending the day at 12,389.41, a net rise of 185.40 points or 1.52 per cent over Wednesday's close of 12,204.01.
Similarly, the National Stock Exchange's (NSE) S&P CNX Nifty advanced by 49.55 points or 1.41 per cent to 3,564.90 from previous close of 3,515.35.
Crediting the dramatic turnaround, brokers said Foreign Institutional Investors (FII), which were heavy sellers in the last two days, were engaged in hectic shortcovering following a possible slowdown in U.S. Economy.
The Dow Jones Industrial Average and the Nasdaq Composite Index ended sharply higher on October 4 while Asian as well as European markets witnessed buoyant trend today. The Nikkei ended up by 366.78 points and the Hang Seng by 278.46 points.
Banking and IT shares the limelight. SBI, HDFC Bank, ICICI Bank, Infosys Tech, Satyam Computers and Wipro recorded impressive gains.
The market breadth was positive with 1,839 gainers and only 663 losers of the total 2,583 traded shares.
The trading volume was relatively high at Rs 3,681.15 crore compared to Rs 3,588.08 crore on Wednesday. Mahindra Gesco was the top traded scrip with highest turnover of Rs 218.22 crore followed by RIL (Rs 134.29 crore), Atlanta (Rs 96.58 crore), Gwalior Chem (Rs 76.81 crore) and Unitech (Rs 75.82 crore).
The broad-based BSE-100 Index rebounded by 93.06 points to 6,316.35 from previous close of 6,223.29.
The BSE-200 Index and the Dollex-200 were quoted sharply up at 1,495.73 and 545.17 at close compared to last close of 1,473.03 and 536.40, respectively. The BSE-500 Index spurted by 73.77 points to 4,748.64 from previous close of 4,674.87 and the Dollex-30 ended higher at 2,226.85 from 2,191.48.
SBI shot up by 24.15 to 1039.10, HDFC Bank by 3.15 to 930.60, ICICI Bank by 9.85 to 705.45, Infosys Tech by 62.55 to 1865.75, L&T by 28.45 to 1262.35, HDFc by 12.25 to 1452.95, HLL by 3.00 to 249.95, Satyam Computer by 15.05 to 817.90, Tata Motor by 14.50 to 894.75, TCS Ltd by 10.90 to 999, ONGC by 10.30 to 1143.60, Bajaj Auto by 20 to 3107.25, BHEL by 9.95 to 2311.55, Grasim by 56 to 2547.40, ITC by 2.50 to 187.40, Reliance Comm by 8.70 to 348.30, RIL by 5.70 to 1155.05, Tata Steel by 14 to 537.35, Wipro by 11.80 to 520.90, ACC by 4.15 to 982.75, Cipla by 4.75 to 257.10 and GACL by 3.75 to 120.70.