Markets end higher on positive global cues; metal, telecom up

08 December 2008

The benchmark indices saw smart buying interest in today's session, despite a sell-off at higher levels which wiped out more than half the index's gains in the last one hour of trade. Positive global cues, RBI rate cut move, and government's fiscal stimulus package aided market sentiment. Buying was seen in metal, realty, banking, capital goods, power and telecom stocks.

The Sensex surged 466.91 points to hit a high of 9,432.11 during the day. It closed the day at 9,162.62, up 197.42 points or 2.2% over previous close. The 50-share NSE Nifty gained 69.60 points or 2.56% at 2784, after touching an intraday high of 2861.55. Indices slipped 269.49 points and 77.55 points from day's high, respectively.

Among the frontliners, DLF, Tata Steel, Bharti Airtel, HDFC, Reliance Communication, Unitech, Ambuja Cements and Cairn India surged 5-8.9% . However, Tata Motors and M&M declined.
 
BSE Midcap Index closed with a loss of 7.92 points or 0.27% at 2,885.03 and Small Cap Index gained 19.66 points or 0.59% at 3,343.20.

The Government of India's Rs 20,000-crore fiscal stimulus package helped the markets. The central bank, Reserve Bank of India has cut repo rate by 100 bps to 6.5% and reverse repo rate by 100 bps to 5% on Saturday, both rates got effective from today.

Realty Index outperformed other indices; rose 89.18 points or 5.2% to 1,781.37. DLF and Unitech surged 6.7-8.7%.

Buying was seen in metal stocks, as Goldman Sachs has upgraded rating on Nippon Steel and JFE, and cut on Sumitomo Metal in its report. It raised ratings on Nippon Steel and JFE Holdings to Buy from Neutral on back of valuation, recent improvement in Asian steel market.