Oct 10, 2008

Markets pull back smartly after plunging in the morning Markets opened sharply lower on the back of the news that the US House of Representatives defe

30 Sep 2008 | 19:13 Markets pull back smartly after plunging in the morning Markets opened sharply lower on the back of the news that the US House of Representatives defeated the USD 700 billion bailout plan in a 205-228 vote.

Markets pull back smartly after plunging in the morning Markets opened sharply lower on the back of the news that the US House of Representatives defeated the USD 700 billion bailout plan in a 205-228 vote. They however pulled back sharply after Finance Minister and RBI clarifications on our present banking and financial system. The rally was led by banking, capital goods, power, realty, telecom and oil and gas stocks. Smart recovery in European markets and positive Dow futures also helped our markets a bit.

While the Sensex finally closed 264.68 points or 2.1% higher at 12,860.43, the Nifty gained 71.15 pts or 1.85% to close at 3921.20. The broad market indices also ended higher as the BSE Midcap and Smallcap indices gained 1.46% and 0.44% respectively. Market breadth was marginally negative as A/D ratio was 0.97:1 on the BSE. NSE cash turnover was Rs.14,794crs. Vs.
Rs.13,119crs. on Monday.

Most of the sectoral indices ended higher. The top gainers were the BSE Bankex, Capital goods, Realty, Consumer Durables and Power indices. The indices that ended lower were the BSE Metals and FMCG indices. The top gainers from the BSE-30 were ICICI Bank, TCS, HDFC, Bharti Airtel and BHEL.
The top losers were Tata Steel, Tata Motors, Ranbaxy, Grasim and Tata Power.

The 3790 supports has proved to be a very strong support as though the Nifty opened below these levels and touched an intra day low of 3719.55, it quickly recovered to close above these levels. The long term trend nevertheless remains down and we remain open to the possibilities of the markets making new lows for this year. The short term direction is likely to be influenced more by global events in the next few sessions.

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