‘Global turnaround has raised confidence in investors’
MUMBAI: The markets staged an impressive pull-back rally on Thursday, shrugging off fears whatsoever, with the benchmark Sensex shooting up by more than 810 points on strong cues from global markets as fears of a recession in the U.S. have started withering.
Marketmen said investors’ confidence was so high that even the Centre’s decision to effect a hike in fuel prices failed to dampen trading sentiment.
The 30-share BSE barometer gained 817.49 points to settle the day at 17766.63 over its previous close of 16949.14.
Market players said signs of the foreign institutional investors (FIIs) returning ahead of the Union Budget, which is to be presented on February 29, also boosted trading sentiment.
As many as 29 of the 30 Sensex shares registered impressive gains. Only Infosys ended in the red.
Refinery stocks surge
Refinery stocks, riding on the decision to increase prices of petrol and diesel, surged as the rise in retail rates is expected impact the bottom lines of public sector oil marketing companies.
It is for the second day in row that the markets are surging on global cues. While a surprise rise in January U.S. retail sales boosted investors’ confidence on Thursday, Warren Buffett’s offer to reinsure U.S. Municipal bond risk had enlivened the markets on Wednesday.
Reflecting a sharp rally on Wall Street on Wednesday, Asian indices ended positive in the range of about 1.4-4.3 per cent. European markets too were firm during early trade.
Market participants said the global turnaround has raised confidence in investors, who hectically covered their short positions and also made fresh commitments across the board. — PTI