Cheer for investors as Sensex rises for second day

January 28, 2009

It was another bright day for Indian investors as gains across world markets allayed concerns over risk aversion and triggered short covering ahead of the expiry of monthly derivatives contracts on Thursday.

The BSE Sensex closed 2.81 percent up at 9257, with heavyweight Reliance Industries leading the march.

Investor mood seemed positive despite poor corporate results. Globally too stocks did well on reassuring corporate results on Wall Street.

Reliance rose 3.8 percent to 1273.15 rupees.

Fraud-hit Satyam rallied 17.6 percent to 55.45 rupees, extending gains to an eight session after the government-appointed board said it had received proposals from companies and buyout firms.

ICICI Bank’s better-than-expected quarterly results sparked short covering which pushed the scrip up 7 percent to 408 rupees.

ONGC rose 3.4 percent on a rebound in global oil prices. The company reported a 43.4 percent drop in quarterly net profit after market hours.

Tata Steel Ltd reported December quarter profit from its Indian operations more than halved as sales volumes dropped and margins slipped. Shares in Tata Steel rose 2.6 percent as investors focused on the recent rally in steel stocks globally and on hopes metal producers will press for a cut in input prices.

Prominent among the losers was Glenmark Pharmaceuticals, which dropped nearly 25 percent after the firm said it was unlikely to meet the milestone fee forecast for FY09.

A change in investor mood is now visible and Indian stock markets seem to have taken in their stride the poor corporate results this season and a no-action decision by the RBI yesterday.

But the question at this point is will we continue to see more rallies, and if yes, then for how long?

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