Markets end strong led by capital goods, metals, banks

19 June 2009

The benchmark indices rebounded sharply, after two days of downfall. They managed to recover some of their losses on the back buying in most beaten down sectors like infrastructure, metal and banking. Positive European (helped by banking shares) and Asian cues were also being supportive. All these factors helped the Nifty to close the day above 4300 mark.

The markets gained strength in the last half an hour of trade otherwise rest of the day was in consolidation. The 30-share BSE Sensex has touched an intraday high of 14,559.08 and low of 14,179.77, before finishing the trade at 14,521.89, up 1.8% or 256.36 points. The 50-share NSE Nifty closed at 4313.60, up 1.46% or 62.20 points, after seeing a day's high/low of 4326.20 and 4206.70, respectively.

Reliance Industries also helped the markets, gained 0.8%. The company was likely to approach the Supreme Court next week, after the Bombay HC decision in favour of RNRL in the RIL-RNRL gas case, reports CNBC-TV18 quoting sources.

S Naren, Senior VP & Head Equities at ICICI Prudential said, "Today has been a good for the market. I think there are three factors which will guide the moment of the market in the future, one would be monsoon which so far has not been good. The second is crude because we have had a situation where crude has also gone up in line with the market and the third is a Budget. All these three events will become clearer over the next one month and market moves in my opinion would be based on what happens to all these three issues."

However, the whole week was bad for the markets; the Sensex plunged 4.7% and the Nifty lost 5.9% on the back of profit booking in commodities and infrastructure stocks.

Sectoral indices
All sectoral indices ended on a positive note. The BSE Capital Goods Index outperformed other indices, gained 537.30 points or 4.58%, to close at 12,259.94. Realty, Metal, IT and Bank indices went up 1.8-3%.