The Hindu : Business : Sensex surges 414 points

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Tuesday, Apr 08, 2008
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Business

Sensex surges 414 points

Wide array of sectors witness good buying

MUMBAI: The markets surged on Monday with the benchmark Bombay Stock Exchange sensitive index (Sensex) closing the day higher by 414 points on heavy buying support in fundamentally strong shares, particularly market leader Reliance Industries.

The 30-share Sensex closed at 15757.08, a gain of 413.96 points, or 2.7 per cent, from its previous close.

The broader 50-share S&P CNX Nifty of the National Stock Exchange also shot up by 114.20 points or 2.46 per cent to close at 4761.20 against the previous close of 4647.

Market players said Asian indices closed up by about 1-4.5 per cent higher, while a firm start in the European markets enlivened investor sentiment here.

The Sensex had lost 489 points, or 3 per cent, on Friday on fears of tough monetary measures following the inflation rate soaring to a 39-month high of 7 per cent.

Marketmen said fourth quarter results could be the key trigger for markets but there were apprehensions over India Inc.’s performance in the light of a new accounting norms which asked companies to disclose and/or provide for losses on derivative contracts.

Meanwhile, Friday’s U.S. employment data, which showed a surprise cut of 80,000 jobs in March, raised expectations of a further rate cut by the Federal Reserve.

On the BSE, a wide array of sectors attracted good buying support.

Reliance notched up a 3.6 per cent gain on reports that the company was planning to enter into the rig manufacturing business, besides huge investment plans into petrocoke gasification.

Bank and FMCG stocks also scored impressive gains. SBI rose by 4.24 per cent and ICICI Bank by 5.97 per cent. Hindustan Unilever closed the day higher by 4.62 per cent and ITC by 4.73 per cent. — PTI

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