Reports of a softening of stand by the Left parties on the Indo-US civilian nuclear deal boosted sentiments on Dalal Street on Tuesday. The Left go-ahead to the UPA government to proceed on their discussion with the IAEA helped the domestic bourses to defy negative global sentiments to end its six-day losing streak. It closed the day on a positive note above the 19,000 level. The 30-share Sensex of the Bombay Stock Exchange (BSE) rose 472 points in the intra-day trade before ending the day at 19,035.48 points, up 298.21 points or 1.59%.
On the other hand, the broader S&P CNX Nifty of the National Stock Exchange (NSE) ended the day at 5,695.40 points gaining 78.3 points or 1.39%. Asian markets showed a mixed trend with Nikkei 225, Shanghai Composite and Strait Times ending the day in the red while Hang Seng and Taiwan Weighted closed higher.
Dealers said the softening of the stand by the Left parties on the nuclear deal issue would surely have its positive impact on the market but more than the political issues, the more important point here is that of slowing down in the activities of the foreign players. This could see more volatility in the Indian markets in the days to come.
As per the provisional figures released by the stock exchanges, foreign institutional investors (FIIs) were net sellers to the tune of Rs 332.84 crore.
Across the board buying resulted in a strong market breadth with 1,859 stocks advancing when compared to 898 stocks that had declined. Among the Sensex pack, 19 stocks advanced higher while 11 stocks declined. Main drivers of the Sensex rally on Tuesday were stocks belonging to capital goods and banking sector stocks.
