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Sensex Recovers From 2-Year Low; Gains 158 Pts

Mumbai, Nov 24: The Bombay Stock Exchange benchmark Sensex today recovered from two-year low, gaining 158 points on fresh buying amid the settlement of monthly derivative contracts, easing food inflation and a firm trend in

India TV News Desk [ Updated: November 24, 2011 17:34 IST ]
sensex recovers from 2 year low gains 158 pts
sensex recovers from 2 year low gains 158 pts

Mumbai, Nov 24: The Bombay Stock Exchange benchmark Sensex today recovered from two-year low, gaining 158 points on fresh buying amid the settlement of monthly derivative contracts, easing food inflation and a firm trend in the European markets.


The Sensex, which had lost 365 points yesterday to touch two-year low, dropped further in the intra-day trade before making gains to close 158.52 points, or 1.01 per cent, up at 15,858.49.

On the similar lines, the broad-based National Stock Exchange index Nifty shot up 50 points to 4,756.45, after touching the day's low of 4,639.10.

Brokers said apart from settlement in the derivatives segment and buying at lower levels that guided the sentiment throughout the day, upsurge was prompted by higher openings in Europe on indications that the euro-zone debt crisis may ease.

They said investor sentiment was also bolstered by food inflation falling sharply to 9.01 per cent for the week ended November 12 from 10.63 per cent in the previous week.

Besides, the recovery of the rupee from historic lows against the US dollar was another supporting factor for the market, they added. It rose for the first time in nine days following the flow of dollars in the financial system.

Auto, capital goods, healthcare and realty stocks were in demand. Of 30-BSE index scrips, 25 closed with gains while five remained in the negative zone.

Major contributors to the rally were Bajaj Auto, Bharti Airtel, BHEL, Infosys, L&T, M&M, Maruti, TCS and Wipro.

“Market had cautious start on muted overseas cues.  Sentiments turned a bit positive on report that weekly food inflation has slipped below double digits at 9.01 per cent.  The rally was also supported by the short coverings as November derivative series came to an end today,” said Shanu Goel, Senior Research Analyst at Bonanza Portfolio.

Despite the gains, nearly one-fourth shares from “A” group registered 52-week lows, including Sensex stocks like Tata Steel, Tata Power, SBI, L&T, Hindalco and BHEL.

In Asia, key indices in Hong Kong, Singapore, South Korea and Taiwan closed with gains, while from China and Japan finished with losses.

European stocks, however, showed firm trend in the afternoon trade. The CAC, the DAX and the FTSE were up between 0.6 per cent and 1.7 per cent.

Back home, from the Sensex pack, Maruti Suzuki was the top gainer with a rise of 4.02 per cent, followed by Bajaj Auto (3.71 pc), Bharti Airtel (3.65 pc), ONGC (2.90 pc), L&T (2.76 pc), Tata Motors (2.76 pc), M&M (2.57 pc), TCS (2.53 pc), Jaiprakash (2.33 pc), BHEL (2.01 pc), Wipro (1.48 pc), NTPC (1.28 pc), Coal India (1.10 pc), HDFC Bank (0.76 pc) and Infosys (0.61 pc).

Among the sectoral indices, BSE-Auto spurted 2.45 per cent, Capital Goods (2.31 pc), Teck (1.74 pc), Healthcare (1.68 pc), Realty (1.34 pc) and IT (1.29 pc).

The total market breadth on the BSE turned positive as 1,460 stocks closed in the green, while 1,313 ended in the red. The total turnover was Rs 2,012.91 crore from Rs 2,011.32 crore yesterday.

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