Equity indices closed the day with huge gains on the back of strong cues from the Asian and US markets coupled with genuine buying and expectation of rate cuts, after China lowered its interest rates.
Dealers in the market say huge volatility was witnessed ahead of expiry of the derivatives contract on Thursday. Also, US Federal Reserve measures to enhance the flagging US financial system boosted the sentiments of the domestic markets further. The 30-share Sensex of the Bombay Stock Exchange (BSE) rose 331.19 points or 3.81% and ended the day at 9,026.72 points.
Devesh Kumar, managing director (equities) at Centrum group said, ?In the current scenario the markets are going through the stabilisation phase, we might witness some relief rally in the coming days.? The broader S&P CNX Nifty of the National stock Exchange (NSE) added 98.25 points or 3.70% to close the day at 2,752.25 points.
The bourses started the day with positive gap and continue to remain encouraging for the entire trading session. An analyst from the leading broking house said, ?Apart from strong global cues, we also witnessed some short covering in the markets. Further the positive European markets as well as the US index futures supported the uptrend in our markets in the last session of the day. The Nifty November futures contract is expiring on Thursday and the rollover figure is at 47%, which is poor, showing that the investors are less interested to carrying over their positions to the coming month.?
All the sectors in the BSE Sectoral indices ended the day in green, with Bankex, Oil & Gas and Metal being the top performers.
Though the markets ended the day with gains, the breadth of the market remained negative as out of 2,230 stocks traded on BSE only 940 stocks advanced, 1,222 stocks declined and 68 remained unchanged. In Sensex, 28 stocks ended in green, while the remaining two stocks ended the day on negative terrain.