Nifty ends above 3650; IT, Bank, Oil & Gas, TECK up 4-5 per cent

12 May 2009

It was a roaring session for the benchmark indices led by largecaps; the Sensex posted more than 500 points rally while the Nifty shot up over 100 points, ahead of Election results on Saturday. This sharp rally was despite the weak IIP (Index of Industrial Production) data, which came in at -2.3% for March. Huge buying in technology, banking, realty, telecom and infrastructure stocks supported the markets to show strong upsurge.

The 30-share Sensex surged 511.64 points to touch an intraday high of 12,194.63, before closing at 12,158.03, up 4.07% or 475.04 points. The 50-share NSE Nifty ended 3.56% or 126.50 points higher at 3681.10, after hitting day's high of 3691.65.

Among the frontliners, HDFC, Wipro, ICICI Bank, Bharti Airtel, Infosys, Reliance Industries, Hindalco and BHEL were up 5-7.7%. Jaiprakash Associates, M&M, Reliance Communication, HDFC Bank, Tata Motors, Reliance Infrastructure, TCS and DLF gained 3.5-4%.

Rahul Mohindar of viratechindia.com said, "This is something which is beyond short covering. I didn't think that there were too many shorts built in last two days; there was probably a wave of profit taking from that 3,750 odd resistance. So I think giving a slightly bigger perspective probably the market is heading to levels like 3,950."

The fifth and last phase of Election polling will begin tomorrow (May 13, 2009) and the results will be out on May 16, 2008, Saturday.

Devesh Kumar, MD of Centrum Broking said, ''The comfort is coming in that one of the two large formations, they will lead the new formation that is one and the second part is the realizations as far as economic policies are concerned; no one has any concerns there that will be followed. The only thing is the pace of execution and stability of government; these are two things which are very much in minds of people.'' ''As we have come to an end of very strong polling, people are discussing various formations and no one is untouchable at this point in time which makes a five-year formation of the next government very likely. So I think uncertainty is going away and incase, it materializes after elections then the market will be in a good mood'', he said.