Nifty closes above 5,200 on huge volumes; Cipla up 4.5 per cent
17 Mar 2010
The benchmark Nifty continued rally for the second consecutive day, reacting to positive global cues and added another 34 points. The index closed above the psychological 5200 mark for the first time since January 20, 2010.
Banking, technology, metal on rise in CRB index, select capital goods, power and pharma stocks witnessed buying interest. However, selling in Maruti, HUL, Tata Power, Tata Motors, Unitech, M&M, BPCL, Suzlon and Ambuja Cement erased some morning gains in the last couple of hours.
Fed's interest rate decision lifted global markets higher. The Federal Reserve held benchmark rates near zero on Tuesday and renewed its pledge to keep them exceptionally low for an extended period. The US markets closed 0.4-0.8% higher yesterday.
Among the Asian markets, Shanghai, Kospi and Taiwan Weigthed gained 2% each today. Jakarta rose 3.25% and Hang Seng went up 1.7%. Nikkei was up 1.2% and Straits Times up 0.8%. European markets were trading 0.5% higher and US index futures were up 0.2%, at the time of closing of Indian equities.
The 30-share BSE Sensex closed at 17,490.08, up 106.90 points or 0.61% and the Nifty rose 33.80 points or 0.65% to settle at 5,231.90, after hitting an intraday high of 17,576.78 and 5,260.50, respectively.
Sudeep Bandyopadhyay, Group President, Financial Services at Spice Group said the markets would definitely see January highs. "In the international markets the signals are very positive. Yesterday we have seen the US Fed not increasing the rates and clearly giving a signal that rates are going to remain where they are for quite sometime. In the Europe, Germany has now come strongly behind the European monetary fund. That's a positive step and it will ease to a great extent the tensions on the debt issue of Greece, Portugal, Spain, Italy and other European economies."
