The Bombay Stock Exchange sensitive index, Sensex, witnessed a highly volatile trade on Monday as they dipped intra-day, but the benchmark index finally ended 183 points higher on funds buying in blue-chips including RIL and HDFC, on sound industrial growth numbers and firm global cues.
After a see-saw session, the Sensex finished higher at 19691.78 against 19508.89 last Friday, making a smart start to the week.
The key index had plummeted by over 458 points or 2.29 per cent last week. The National Stock Exchange's wide-based Nifty saw a similar volatility and ended at 5907.65 against 5857.35.
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Marketmen attributed the smart upmove to value buying at attractive levels and the strength in the Asian peers triggered by China refraining from raising interest rates to cool inflation.
“Recent fall in the market gave investors an opportunity for cherry picking at lower levels which drove the market. Impressive buying in mid-cap and small-cap stocks also lifted the sentiment,” Networth Stock Broking head of institutional business Prakash Diwan said. Experts also said that strong industrial growth numbers for October, released on Friday, and hopes of low overall inflation for November, for which data is to be released on Tuesday, helped investor sentiment remain positive. The rally was led by 1.77 per cent jump in Reliance Industries to Rs. 1,041.80, which carries maximum weight in the Sensex. Besides, mortgage lender HDFC stole the show with a gain of 3.60 per cent at Rs. 692.80.
Smart buying in realty and metal counters also gave the much needed push to the sensitive index. While realty giants Reliance Infra climbed by 3.88 per cent to Rs. 811.40 and DLF by 2.81 per cent to Rs. 291.25, Hindalco witnessed a gain of 3.14 per cent to Rs. 221.50 and Tata Steel by 2.05 per cent to Rs. 630.80.
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Among the global peers, Asian markets ended on a handsome note with China's Shanghai up nearly three per cent and Japan's Nikkei gaining 0.8 per cent. Firm European bourses also supported the markets back home.
Rupee declines
The rupee fell by nine paise to close at 45.14/15 a dollar on Monday on good demand for the U.S. currency from importers. It closed at 45.06 last Friday.
Despite a weak dollar overseas, rupee which opened at 45.10/12 a dollar touched a low of 45.2650 in line with weakness in domestic equities in afternoon deals. It later recouped some ground to settle at 45.14/15. — PTI