The Hindu : Front Page : Sensex regains 11000-level

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Tuesday, Oct 14, 2008
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Sensex regains 11000-level

Chidambaram statement on improving liquidity helps boost sentiment

— PHOTO: PTI

satisfied: Traders in joyous mood after the benchmark BSE Sensex surged 804 points to close at 11332 level on the Bombay Stock Exchange in Mumbai on Monday.

MUMBAI: Stock markets on Monday opened on a strong note, never looked back during the day and at close the Bombay Stock Exchange benchmark Sensex was up by over 780 points and had regained the 11000-level, leaving behind losses suffered last week, the toughest ever for the bourses.

Asian and European markets also snapped their losing spree with key indices in the regions gaining nearly 5-10 per cent.

The BSE 30-share sensitive index settled higher by 781.24, or 7.42 per cent, at 11309.09. Similarly, the National Stock Exchange’s index gained 210.75 points, or 6.43 per cent, at 3490.70 and most of the index participants traded higher.

Marketmen credited the surge to Finance Minister P. Chidambaram’s statement that more measures were expected to be announced to improve liquidity in the system. They said announcements by G-20 nations of plans to tide over the crisis also helped boost investor sentiment. With governments worldwide assuring of steps to address the liquidity concerns, banking index surged the most at 12.51 per cent at 5985.16.

ICICI Bank spurted 25 per cent to Rs. 453.05 during intra-day before closing little lower at Rs. 424.95. Its shares were battered in the recent past on rumours that cast doubts over its financial strengths.

The realty index ended 231 points higher at 2754.07 after rising to 2778.63 at one stage.

Analysts said the rally in the Asian markets after world’s major central banks took several steps to stem the global financial crisis also had a positive impact on the market sentiment. “It seems that the stock markets have reacted positively to the government’s measures,” said a Delhi-based stock broker Manoj Choraria. DLF stocks rose 6.99 per cent to Rs. 301.35, while Indiabull Real Estate surged 23.62 per cent to Rs. 118. Stocks of Akruti City, which had been under pressure for long, staged a significant recovery of 7.94 per cent to close at Rs. 688.95. Unitech shares also closed 10.63 per cent higher at Rs. 91.60. Other gainers were, Anant Raj (1.99 per cent) at Rs. 82, Ansal Infra (3.84 per cent) at Rs. 74.30, and Mahindra Life (7.27 per cent) at Rs. 233. — PTI

Related stories:

RBI, government infuse liquidity

RBI cuts CRR by additional 1 pc

BJP seeks "long-term" bailout plan for economic crisis

SEBI says no evidence of illegal activity

Market mayhem continues

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