Equity markets continued their upside rally for the second consecutive trading session on the back of strong cues from the US and other Asian markets. Domestic bourses opened the day on a positive note, but intense selling pressure dragged the indices to the negative terrain.
Markets again gained momentum after the US Republicans announced that they were considering a new version of the bailout package for financial sector rescue. The 30-share Sensex of the Bombay Stock Exchange (BSE) finally added 195.24 points, or 1.52%, and surged ahead the 13K mark to end the day at 13,055.67 points. The broader S&P CNX Nifty of National Stock Exchange (NSE) gained 29.55 points, or 0.75%, to close at 3,950.75 points.
Dealers in the market said that the sentiments of the market were further boosted as the US Senate was set to take up the vote on the Indo-US nuclear agreement. Among the BSE sectoral indices, banking and IT sectors remained the top gainers while oil & gas and realty were the only sectors that ended in the negative terrain.
Hitesh Agrawal, head of research at Angel Broking, said, ?Though the markets ended on an encouraging note, we witnessed huge volatility in the markets. The only reason markets were in green was due to the reviving of the bail package. Apart from that, we also witnessed heavy buying through-out the board in the markets.?
The breadth of the market remained positive during the trade hours, as out of the total 2,672 stocks traded on BSE, 1,476 stocks advanced, 1,123 stocks declined and 73 remained unchanged.
?IT stocks were in good demand ahead of quarterly numbers of Infosys, traders were covering their shorts, especially the stocks which were beaten down by the traders last week. Investors can take long positions in banking, cement and FMCG sector stocks with appropriate hedge positions,? said a analyst from a leading broking house.