Sensex vaults 510 pts
Index records its fifth-highest gain in a single trading session this year as Wednesday’s rally catapults market back into the trillion-dollar m-cap club. HT reports. How long will the rally sustain?business Updated: Dec 22, 2011 01:57 IST
The benchmark Sensex of the Bombay Stock Exchange on Wednesday snapped a five-day losing streak and ended with a gain of 510 points as investor sentiment received a collective boost from positive global cues, robust buying in the banking sector and a credit rating upgrade for government bonds.
The market also regained its trillion-dollar status as its total size, measured in terms of market value of all listed stocks, rose to $1 trillion (Rs 53,79,251 crore).The Sensex ended up 3.4% to 15,685, the fifth-highest gain for the index in a single-trading session this year.
All Sensex stocks ended in the black, barring Sun Pharma, which closed with a loss of 0.2% at Rs 498.
The Nifty of the National Stock Exchange also rose 3.3%, or 149 points, to end the day at 4,693.
The Indian market had on Tuesday moved out of the coveted $1-trillion league, as its market capitalisation slipped to $995 billion. In Thursday’s trade, the total market value rose by about $20 billion (Rs1.2 lakh crore).
More than half of this gain or about Rs 76,000 crore came from the 30 Sensex stocks.
The Sensex opened strongly in morning trade and rose by over 300 points, helped by rallies in the Asian markets and the US and European bourses. Globally, gainers included South Korea’s KOSPI, which rose 3.1%, Singapore’s Straits Times, which shot up 2.3% and Hong Kong’s Hang Seng, which closed up 1.9%.
“Today’s rise was not very surprising and it was largely due to short-covering and positive global cues and the unchanged ratings status (by Moody’s),” said Deven Choksey, CEO and MD, KR Choksey Shares and Securities. “Also, the rupee showed signs of appreciation, and it’s showing signs of heading towards 50.”
Much of the bad news from the third quarter results due from next month has already been factored in by the market, he said. “The advance tax numbers and our own discussions with companies do not suggest that results will be pessimistic, so the market may not go down badly.”
Moody’s reaffirms India’s bond rating
Global rating agency Moody’s on Wednesday upgraded the credit rating of Indian government’s bonds from speculative to investment grade, a move that could encourage FIIs to increase their exposure in gilts and help companies raise funds from abroad. The agency also upgraded the long-term country ceiling on the foreign currency bank deposits from speculative to investment grade.