The Hindu : Business : Sensex up 306 points on shortcovering

Online edition of India's National Newspaper
Friday, Dec 15, 2006
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Sensex up 306 points on shortcovering

MUMBAI: The Bombay Stock Exchange sensitive index on Thursday gained by more than two per cent amid strong cues from emerging markets, on the back of a rally in banking stocks led by ICICI Bank.

The BSE 30-share sensitive index (Sensex) continued to surge after opening with a wide gap at 13256.81 and closed at 13487.16, a net rise of 305.82 points or 2.32 per cent over Wednesday's close 13181.34.

This marked the biggest gain after July 20, when the market notched up a rise of 345.60 points.

The broader S&P CNX Nifty of the National Stock Exchange flared up by 77.85 points or 2.07 per cent to close at 3843.05.

Operators accelerated the speed of covering of positions following reports that the ceiling for tax deduction at source on interest income from fixed deposits is likely to be raised to Rs. 10,000.

Private sector banks, including ICICI Bank, which has fairly high weightage in the Sensex, were in the forefront after ICICI Bank hiked the lending and deposit rates.

Asian markets exhibited a firm trend during the day. Hong Kong's Hang Seng was up 201.21 points, Japan's Nikkei 136.27 points, South Korea's Kospi 35.10 points, Singapore's Straits Times 32.12 points and Taiwan's Weighted Index 30.11 points.

Meanwhile, despite inflation pressure, a leading foreign fund Credit Suisse has raised India's 2007 growth forecast to 10 per cent from 8.5 per cent. — PTI

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