Rate sensitive, infra stks aid markets; Nifty ends above 3100

04 November 2008

Finance Minister P Chidambaram's meeting today with the heads of PSU banks made Dalal Street happy. The benchmark indices witnessed buying interest in last one hour of trade, after trading choppy since morning. Global cues also turned positive for our markets in late trade. Bank and realty stocks led this rally followed by power, capital goods, FMCG and metal stocks.

The 50-share NSE Nifty crossed the 3,100 level and went up higher by 108.45 points to touch an intraday high of 3152.30. The 30-share BSE Sensex jumped over the 10,500 mark and hit an intraday high of 10,668.48, with a gain of 330.8 points.

The Sensex surged 293.44 points or 2.84%, to close at 10,631.12 and the Nifty settled at 3142.10, up 3.23% or 98.25 points over the previous close. BSE Midcap Index rose 90.68 points or 2.7% to 3,446.22 and Small Cap index was up by 108.01 points or 2.75% at 4,035.11.

In the derivative space, Nifty Futures continued to see long build up. It oscillated between 10 to 30 point premiums and ended at 32.90 points premium. Real Estate stocks were up with significant open interest build up. Fresh short build up was seen in IT stocks. Banking and Capital goods stocks continued to see log build up. Aggressive Put writing was seen in 2800 strike price.

Among the frontliners, DLF, Ranbaxy Labs, Jaiprakash Associates, Tata Power, Reliance Communication, ITC, ONGC, Suzlon Energy, Unitech, Reliance Power, Siemens and SAIL shot up 7-21%.

Finance Minister P Chidambaram said that liquidity has to be monitored on a continuous basis. The RBI is committed to provide adequate liquidity as required, he added.. FM had discussed agricultural credit, SME credit, liquidity enhancing measures, credit growth, capital adequacy with bankers. He also said that we was satisfied that action had been taken by RBI and banks.