Indian bourses continued their northward journey on the opening day of the week, on the back of strong cues from Asian and US markets and the fiscal package announced by public sector banks for the realty sector. Domestic markets ended the day in the green terrain after paring some earlier gains on profit-booking after a sharp rally.
Dealers said that constant expectation of the second round of the government?s stimulus package and hopes of a rate cut by the central bank, continued to to the rounds in the market. The 30-share Sensex of the Bombay Stock Exchange (BSE) added 142.32 points, or 1.47%, and closed the day at 9,832.39 points.
Indian markets opened on a positive note, tracking firm cues from global markets. Despite some volatility, benchmark indices continued to trade higher and finally ended the day with some gains. The broader S&P CNX Nifty of the National Stock Exchange (NSE) added 59.85 points, or 2.05%, and ended the day at 2,981.20 points.
An analyst from a leading broking house said, ?Since the last few days, we are witnessing some buying from foreign institutional investors (FIIs). Apart from that, constant measures from the government are lifting the confidence of investors. However, we need to watch the quarterly earnings in January for the market to react fundamentally.?
Among BSE Sectoral indices, IT was the only sector to end the day in red. All other sectors ended the day with gains; realty and metal stocks out-performed the benchmark indices and ended with gains of more than 5% each. FIIs were net sellers at Rs 106.40 crore on December 15. They, however, remain net buyers for the month of December.They are net buyers to the extent of Rs 1942.30 crore in December till date.
Kaushal Sampat, COO, Dun & Bradstreet India, said in a report that immediate impact of the government?s stimulus measures is likely to be limited, given the fact that they bear fruits with some time lag.?