Mkts reverse losses

Written by Markets Bureau | Mumbai | Updated: Dec 30 2008, 06:23am hrs
Stock prices rose on Monday, snapping last weeks losing streak. The Sensex gained 204.60 points, or 2.2%, to close at 9,533.52 points. The Nifty of the National Stock Exchange (NSE) also increased by 64.95 points, or 2.3%, to 2,922.20.

Banking and metal shares led the gains on the back of strong global cues despite political tension in Gaza Strip. The market also received support from some banks decision to cut interest rates up to 125 basis points. The market opened weak but interest rate cuts by banks helped the Sensex recoup.

The market received a boost also from Satyam Computer Services announcement that it would review strategic options and the boards composition. The Satyam Computer stock made a surprise gain of 9.2%. The stock was hammered recently after the companys attempt to buy out two firms ran into trouble. The Volatility Index of NSE was down 2.8%.

The rupee mirrored the gains in stocks. The currency gained on speculation that foreign institutional investors will pull out less funds. There was also speculation that some traders sold dollars. Bloomberg data showed that the rupee closed 0.1% higher at 48.415 a dollar.

Ranbaxy Laboratories Ltd and Novartis India Ltd gained on expectation of higher dividend payout. Airline stocks also advanced. The Sensex declined 53% this year on worries of economic slowdown. According to the latest data from Securities and Exchange Board of India (Sebi), overseas funds were net sellers of Rs 259.3 crore in equities. Other companies that were active included Jindal Steel & Power, Tata Motors Ltd, and Wockhardt.