Money on the markets
A maturing market amid the mayhem
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”.
Well things looked shaky in the morning with the Sensex in negative territory, but it managed to recover in late trade to close 52 points up at 8954.86.
After gaining nearly 2 percent during trade, the benchmark index pared gains and closed just 80.5 points higher at 8902, as cuts in factory gate duty and service tax triggered short covering ahead of the expiry of monthly derivatives contracts.
The day belonged to auto and metal stocks, which appeared attractive on expectation the duty cuts on Tuesday will boost sales.
The BSE Auto Index closed 3 percent higher and the BSE Metal Index ended 1.2 percent up. Apollo Tyres, Tata Motors (trucks) and Ashok Leyland have slashed prices after yesterday’s announcement.