Sensex Gains on First Day of 2009 on Falling Inflation

Sensex Gains on First Day of 2009 on Falling Inflation
The year 2009 commenced on a promising note as the Bombay Stock Exchange benchmark Sensex today surged over 256 points on heavy buying by funds on falling inflation data and expectations of another stimulus package from the government.

The 30-share BSE Sensex gained 256.15, or 2.66 per cent, at 9,903.46, as traders started buying for the new year, buoyed by hopes of an economic package and rate cuts, after it slumped more than half in 2008 -- its worst annual fall.

The key index touched the day's high of 9,921.70 and a low of 9,711.64 with some investors offloading shares on fears that the market boosters might not give a sharp turnaround to the economy amid dismal corporate earnings and the global economic downturn and financial market turmoil.

The 50-share National Stock Exchange benchmark Nifty oscillated between 3,039.25 and 2,963.30 before ending with a gain of 74.30 points at 3,033.45.

Marketmen said the inflation rate falling to a 10-month low at 6.38 per cent and the prospect of another stimulus package and the RBI's rate cuts boosted trading sentiment.

They said general investors are still not confident of joining the rally, and are offloading.

The realty sector index gained the most, by 6.52 per cent, to 2,422.43 on the expectation of another round of interest rate cuts. The metal sector index was the second-best performer, rising 6.02 per cent at 5,528.38, influenced by a rally at the London Metal Exchange last evening.

The stock market had fallen about 64 per cent in 2008, caught in financial turmoil and slowing credit demand. The construction-related capital goods sector index shot up by 4.73 per cent at 7,238.21, as shares of Larsen and Toubro, BHEL, Siemens and Punj Llyod rose smartly.

The information technologies index added 3.83 per cent at 2,313.19 on the back of a rise in Satyam Computer, Infosys, HCL Techno, and Wipro.

The oil and gas index rose by 1.82 per cent at 6,159.92 after Reliance Industries, with the highest weight in the Sensex, gained 1.90 per cent at Rs 1,253.65, after a 14 per cent jump in crude oil prices eased worries about pressure on its refining margins. The stock had fallen 57.3 per cent last year.

The PSU index rose 3.23 per cent at 5,450.24, Teck index by 3.17 per cent at 2,008.84, auto index by 3.12 per cent at 2,520.88, power index by 2.94 per cent at 1,883.15, bank index by 2.39 per cent at 5,585.01, consumer durable index by 2.23 per cent at 1,956.48, healthcare index by 0.82 per cent at 2,990.56 and FMCG index by 0.23 per cent at 1,991.98.

With buying activity spreading widely, the smallcap index jumped by 3.46 per cent at 3,810.41 and midcap index by 2.60 per cent at 3,319.10.
Next Story : CVC Recovers Rs 46 cr, Concerned Over Sanction of Prosecution
Download the Outlook ​Magazines App. Six magazines, wherever you go! Play Store and App Store