Sensex ends above 14000 on strong global cues; bank, oil lead

19 September 2008

It was a spectacular session for the markets, influenced by strong global cues on hopes that the US government is on the way to consider comprehensive plan to rescue financial firms from the debt trap situation and to end this credit crisis running for more than 10 months.

Even in order to stabilise shares prices of financial firms as it was happening by way of more short selling, the US market regulator, SEC has halted short-selling of financial stocks in the US. This halt will apply to 799 financial stocks in the US. After this news, Dow Jones and Nasdaq Futures gained around nearly 2.5%, which were implications that US markets will see gap up opening.

China scrapped stamp duty on stock purchase and curbed short selling, that news helped Shanghai to scale up to 10% in today's trade followed by Hang Seng with a gain of 9.61% at close. The Nikkei was up 3.76%, Taiwan 5.82%, Kospi 4.55%, Straits Times 5.78% and Jakarta 5.82%.

European shares also surged higher, FTSE was up nearly 8%, seen a biggest rally ever after the news that UK financial regulators also banned the short-selling temperorily of some financial stocks. CAC was up 6.4% and DAX rose nearly 4%, at the time of writing market report.

In order to improve liquidity in markets, central banks (Fed, BOE, BOJ etc) had injected nearly USD 250 billion on Thursday. They have put in more money today as well.

Russia's RTS also jumped nearly 20% to 1,266.75 after halting for two days due to massive fall since Monday. It had lost 21% in first three days of this week.