A maturing market amid the mayhem
Sensex climbs 5.1 pct, expiry watched
The Sensex ended 457.34 points up on Monday after a fresh plan to clean up the U.S. financial sector set off a strong rally across Asia.
Gains were led by Reliance Industries which rose 7.5 percent, NTPC (up 3.4 percent), ICICI Bank (up 7.3 percent) and Housing Development Finance Corp (up 8.4 percent) led the gains.
The U.S. government, in its latest move to rescue the economy from the clutches of a deep recession, has introduced a $1-trillion plan to rid banks’ balance sheets of bad loans and securities.
The Banking Index was up 6.6 percent on overall improvement in investor sentiments, while the Oil & Gas Index rose 6.4 percent on hopes of a recovery in the U.S. economy as crude oil prices rose toward $53 a barrel.
Tata Motors was up 3.2 percent at 166, ahead of the launch of the ultra low-cost “Nano”.
The 50-share NSE index ended 4.7 percent up at 2,939.90.
The top benchmark gainers included Ranbaxy, which rose 10.8 percent, Reliance Industries, which gained 7.5 percent, and Tata Steel which was up 10.39 percent.
FII data showed a positive net investment in equities of $12.3 million, while a net selloff was seen in debt of $39 million. Foreign funds have sold a net of $1.9 billion worth of shares so far in 2009.
The U.S. government’s move has certainly cheered investors globally, but there are still doubts over private sector participation and questions about who will end up paying the most for the clean-up.
Do you think the market will be able to sustain the current momentum or will it pare today’s gains ahead of the March derivatives expiry on Thursday?