Nifty ends 5-day losing streak; RIL, SBI, HDFC Bk surge

16 September 2008

Markets took a U-turn in late trade and bounced back quite sharply as buying was seen in public sector banks and oil stocks. Short covering also triggered the rally. Benchmark indices closed mixed and the Nifty has broken five-day losing streak. This late trade recovery was led by Reliance Industries, SBI, HDFC Bank, BHEL and Reliance Power.

Markets had started lower with sharp reaction to bad global cues as credit concerns are still not over yet in the US financial space. Indices remained weak till 2:30 pm and was witnessing a bit of volatility but Dow Jones and Nasdaq Futures trading marginally in green have given positive indication that might be a relief rally in US markets. It was in the anticipation that Fed may cut rates by 25-50 bps, which will provide liquidity in markets to some extent.

The Sensex has recovered nearly 467 points and the Nifty 155 points from days low of 13,051.73 and 3919.35, respectively. The Sensex closed with a loss of 12.47 points or 0.09% at 13,518.80 while the Nifty rose 2 points or 0.05%, to settle at 4074.90.

Among the frontliners, Tata Communication shot up 7.77%, SBI 6.49%, Sterlite Industries 2.66%, Reliance Industries 2.35%, HDFC Bank 2.16%, ITC 2.16%, NALCO 4.07%, BPCL 3.88% and Hero Honda 3.36%. However, ICICI Bank plunged 5.82%, Jaiprakash Associates -5.09%, Maruti Suzuki -3.55%, Ranbaxy Labs -3.23%, Satyam -3.21%, Suzlon Energy -5%, Sun Pharma -3.58% and Cairn India -3.52%

BSE Oil & Gas Index gained 113.67 points or 1.29%, to close at 8,928.13.

Bankex rose by 60.39 points or 0.89% to 6,852.41.