Sensex up 273 pts;snaps 6-day downtrend as global mkts rebound

Mumbai, Aug 10 (PTI) Stock markets snapped 6-day losing
streak with the BSE Sensex jumping 273 points to regain the
17k mark at 17,131, as investors picked up equities globally
at bargain levels after the US Fed decided to keep interest
rates at all time low to check economic dip.
Auto, realty, IT, banking and capital goods attracted
strong buying.
The Bombay Stock Exchange 30-share barometer opened with
380 point gain and reached 17,256.46. However, profit-booking
pulled it back to close at 17,130.51, a rise of 272.60 points
or 1.62 per cent. It had collapsed 1,456.42 points or 7.95 per
cent to a 14-month low in the last six sessions.
The 50-issue Nifty of the National Stock Exchange also
recovered by 88.15 points or 1.74 per cent to 5,161.
Brokers said the reassurances given by the government to
tackle the fallout of the global financial turmoil also helped
soothe market nerve.
"Both RBI and Ministry of Finance are working together in
close cooperation to ensure that whatever steps are needed,...
(are) taken. There will be no dearth of liquidity of forex",
Finance Minister Pranab Mukherjee said.
Financial markets world wide went into a turmoil after
the downgrade of US creditworthiness by ratings agency S&P on
Friday, compounding fears of global economic slowdown amid
debt troubles in some euro zone nations.
On the US Federal Reserve's decision to keep the interest
rates at near zero level for two year, Mukherjee said, "it
will have some impact" on the Indian markets which are in the
process of stabilisation after witnessing huge decline.
The US markets -- Dow Jones and Nasdaq -- shot up 3.98
per cent and 5.29 per cent after US Fed decision. Following
that, Asian and European stocks gained as well.
In Asia, barring Singapore market, which closed down by
2.18 per cent, others ended in the green. Key indices from
China, Hong Kong, Japan, South Korea and Taiwan were up
between 0.27 per cent and 3.25 per cent. European stocks too
displayed a firm trend in afternoon deals. The CAC was up 0.84
per cent, DAX (2.74 pc) and FTSE (1.69 pc).
"From here on, much will hinge on the upcoming data
points from the US, euro zone and other important parts of the
world," said Amar Ambani, Head of Research at IIFL.
"For India, the key catalysts could be sharply lower
commodity prices, particularly that of crude oil. There may be
some relief on fuel prices if crude stays low," he added.
Auto stocks were in big demand on hopes of fall in local
fuel prices after dip in global crude prices. Tata Motors was
the top gainer from the Sensex pack, rising 6.08 per cent,
followed by Maruti (5.95 pc), M&M (5.03 pc), Bajaj Auto (4.23
pc) and Hero Motor (1.14 pc).
IT counters also recovered after recent heavy sell-offs.
Infosys rose 2.88 per cent, Wipro (2.53 pc) and TCS (1.73 pc).
Sectorally, only BSE-FMCG and Oil & Gas indices closed in
the red, while other 11 sectoral indices ended in the green.
BSE-Auto spurted by 4.17 per cent, Realty (2.98 pc), Consumer
Durables (2.61 pc, IT (2.41 pc), Bankex (2.39 pc) and Capital
Goods (2.29 pc).
Overall, 23 of the 30 Sensex-based counters ended with
gains, while others finished with losses.
Meanwhile, FIIs have sold shares worth Rs 4,744.66 crore
since August 2, including provisional data of August 9.
The total market breadth at BSE turned positive with
2,205 stocks gaining ground against only 696 finishing with
losses. The turnover dropped to Rs 2,828.40 crore from Rs
3,398.30 crore yesterday.