Sensex up 197 pts on stimulus package

Tuesday, December 9, 2008 at 4:12 am

Stock markets gained with the benchmark Sensex rising by nearly 200 points on brisk buying sparked by triple bonanza for the industry in the form of duty cuts by the government, RBI’s clear hints towards soft lending rates and slashing of fuel prices.

The domestic currency’s sharp rise of 0.8 per cent to 49.185 against the greenback and positive trends in the overseas markets also bolstered the market sentiment.

The BSE barometer ended with a gain of 197.42 points at 9,162.62 after a rousing start in the opening.

The index had surged to indra-day high of 9,432.11 points but selling at the fag end of the session pulled down the bellwether index.

With government stimulus package, announced the Planning Commission Deputy Chairman Montek Singh Ahluwalia yesterday, extending attractive sops to the housing sector, the realty
stocks, led by sectoral major DLF Ltd, jumped, lending a big support to the Sensex.

National Stock Exchange index Nifty rose by 69.60 points at 2784.00, after touching the day’s high of 2861.55 points.

Brokers said buying activity picked up after RBI cut key policy rates–short term lending and short-term borrowing rates cut slashed by 100 basis points– for the third time in less than two months on Saturday.

The government on its part unveiled a multi-crore to package, including duty cuts, to rejuvenate the industry facing uncertainty at this time of global economic downturn.

Besides, the fuel prices were also reduced on Friday, lifting the sentiment.

The biggest support to the market came in from realty, metal, consumer durable, power, teck and capital goods segment stocks by recording handsome gains.

Realty sector index rose the most by 5.27 per cent at 1,781.37 following a sharp gains in stocks of DLF Ltd, Unitech Ltd, Parasvnath Developers and Indiabulls Realestate.

Metal segment index was the second largest gainer by adding 3.05 per cent at 4,781.22 on the back of a surge in stocks of Tata Steel, SAIL, Jindal Steel, Sterlite Industries, National Aluminum and JSW Steel.

Consumer Durable index rose by 2.78 per cent at 1,704.91, power index by 2.78 per cent at 1,694.41, Teck index by 2.66 points at 1,968.38, Capital Goods by 1.88 per cent at 6,529.39, Bank index by 1.71 per cent at 4,787.85, PSU index by 1.64 per cent at 4,636.03, Auto index 1.43 per cent at 2280.48, Information Technology by 1.21 per cent at 2,385.98, FMCG index by 0.83 per cent at 1,935.16 and Oil and gas index by 0.48 per cent at 5,521.59.

However, healthcare index fell by 0.07 per cent at 2,821.44.

With the market remaining little volatile, midcap index declined by 0.27 per cent at 2,885.03 while smallcap index rose by 0.59 per cent at 3,343.20.

(Agencies)

( This post is from an independent writer. The opinions and views expressed herein are those of the author and are not endorsed by APakistanNews.Com.)

Sensex up 197 pts on stimulus package

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