Indices stage a strong rebound

16 May 2005

Markets opened with a positive gap after last week's trend of sideways movement. There was no major positive global news flow to cheer the markets apart from the rebound in US technology stocks on Friday.

The up move gained strength from early in the afternoon as auto stocks spurted and software stocks also found some buying support on news flows.

Auto stocks gained ahead of the petroleum minister's meeting with the finance minister on fuel price hike. There were also reports that left parties are opposed to any fuel price hike. This led the markets to believe that petrol and diesel prices would remain at these levels and hence automobile sales will not be affected.

Sensex closed at 6528, up 76 points and the Nifty at 2013, up 24 points. Nifty May futures discount to the spot index remained at 11 points.

Among Nifty stocks, Maruti, Bajaj Auto and Tata Motors were the major percentage gainers while Zee Tele, HCL Technologies and Ranbaxy were the major losers.

On Friday, US markets gave a mixed trend as old economy stocks on the New York stock exchange met with some selling pressure and technology stocks on the NASDAQ gained. Dow was down close to half a per cent whereas NASDAQ gained over half a per cent. Technology stocks were boosted by continuing good results from companies, Dell being the latest to join the party.