Indian equity indices closed the last day of the week on a positive note, on the back of news that the US had rescued Bank of America and strong cues from Asian and European markets.
The 30-share Sensex of the Bombay Stock Exchange (BSE) added 276.85 points, or 3.06%, and closed the day at 9,323.59 points. The broader S&P CNX Nifty of the National Stock Exchange (NSE) gained 91.75 points, or 3.35%, and ended the day at 2,828.45 points.
"There was some buying across the board, especially in Reliance Industries, after news regarding the RIL-RNRL case nearing a ruling in coming few days floated in," said dealers in the market. They also said that expectations that there might be some revival in global markets with US President-elect Barrack Obama taking the oath of office next week further boosted the sentiments in the market. However, concerns about company earnings persist and there will be some resistance, said an analyst from a leading broking house.
Domestic markets started the day with positive gap, but soon turned volatile. Some buying in power and metal stocks during the final hours of trading, however, led the markets to end on a firmer note.
Barring realty, all other indices on the BSE Sectoral indices ended the day on the positive terrain. Out of 2,497 stocks traded on the BSE, 1,241 stocks ended the day in green while 1,162 stocks closed in red; 94 stocks remained unchanged. At the Sensex, 25 stocks advanced and 5 declined.
As quarterly result announcements are slated to pick up in the next week, markets might witness some instability, which might force benchmark indices to remain negative.