Indices surge on late buying

04 May 2005

Markets opened firm in the morning as investors the world over were relieved at the US Fed's decision on interest rate being on expected lines (). US markets had reacted positively to the decision yesterday and the decline in crude oil prices added to the positive sentiment.

After trading in a range till early afternoon, the indices surged as buying emerged in many frontline stocks. There were reports of some short positions getting covered. However, volumes remained on the lower side.

Sensex closed at 6290, up 73 points and the Nifty at 1943, up 22 points. Nifty May futures discount to the spot index narrowed to 10 points from yesterday's 18 points.

Among Nifty stocks, Punjab National Bank, Ranbaxy and Tata Power were the major percentage gainers while Sun Pharma, Tata Motors and ACC were the major losers.

US markets were extremely volatile yesterday as investors awaited the decision on short term interest rates and the Fed's outlook on various economic indicators. The markets declined in late afternoon trades after the Fed failed to maintain its earlier outlook on long term inflation. The indices recovered equally fast after a clarification was issued mentioning that the outlook remained unchanged. The indices closed flat at the end of an eventful day.

Crude futures continue their volatile ways. Yesterday the benchmark NYMEX crude for June delivery lost around 3 per cent to close below $50 to a barrel.