Markets end higher; metal, oil, banks, CG stks gain

24 Sep 2008

Markets have rebounded with small rally in today's session after sharp fall seen on Tuesday and ended higher though they were off day's high. Benchmark indices saw some volatility as well ahead of F&O expiry for the month of September. Global cues were absent.

Buying was seen in metal, banking, oil, power and capital goods stocks. However, technology stocks were remained under pressure throughout the day.

The Sensex rose 158 points to 13,729 and the Nifty gained 45 points at 4,172 (provisional).

BSE Metal Index outperformed other indices, rose 2.5% led by Sterlite Industries, NALCO, Tata Steel, JindalStainless, Jindal Saw and Hindalco.

Sterlite Industries surged over 15% and Madras Aluminium rose over 5% after Vedanta's decision to drop its restructuring plan given the changes in global financial markets and investor feedback. However, the company said that it will remain committed to streamlining corporate structure.

Meanwhile, Macquarie feels the announcement on Vedanta's dropping its restructuring plans is a welcome relief to the shareholders of Sterlite. It maintains a buy on Sterlite. It also believes that the holding structure was not conducive for future growth of the company.

On the global front, Asian markets ended marginally higher. Shanghai rose 0.70%, Hang Seng 0.47%, Jakarta Composite 0.56%, Nikkei 0.2%, Straits Times 0.04% and Kospi 0.99%. However, Taiwan Weighted 0.8%.

Asian markets are trading mixed. Nikkei fell 0.5%, Shanghai -2.53% and Taiwan Weighted -0.45%. However, Hang Seng gained 0.97%, Jakarta 0.18%, Straits Times 0.3% and Kospi 0.9%.