Sensex up 341 points on strong global cues
The BSE benchmark Sensex gains 341 points after billionaire investor Warren Buffett's offer had soothing impact on world markets.
The markets snapped the five-day long losing streak with benchmark Sensex posting a smart, over 340 points gain even as the crisis-ridden global financial markets breathed a little easier after reports of billionaire investor Warren Buffett's 800-billion offer to US bonds.
Marketmen said there were indications of stability in the global markets after billionaire investor Warren Buffett offered to reinsure 800 billion dollars of US municipal bond risk from top three bond insurers. The offer had a soothing effect on the burning issue of credit crisis fallout.
Buffett's offer eased fears of credit downgrades at US bond insurers and triggered a sharp rally on Wall Street on Tuesday, bringing some stability in Asian markets.
However, worries over the health of US economy persisted amid reports that the world's largest economy would struggle to grow in the first quarter of 2008.
Snapping a five-day long losing streak, the 30-share BSE barometer ended the day at 16,949.14, a gain of 341.13 points, or 2.05 per cent, over its previous close.
The Sensex had lost 2,055.15 points, or 11.01 per cent, in the last five days. Analysts said the market is expected to move upwards as it recovered immediately after reaching the major break-down levels on Tuesday and settled above the crucial technical levels.
They further noted that the sure happened despite a negative FII activity. Foreign Institutional Investors (FIIs) pulled out about Rs 498 crore from equity on February 12, as per provisional data.
The market breadth remained extremely negative as the activity was largely confined to frontline stocks.