Sensex zooms up by 350 points

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    Indian markets zoomed 350 points on Tuesday, leaving behind the dull lethargy of the past few sessions. The BSE 30-share Sensex closed at 16165 points, or over 2% over its previous close. The NSE 50-share Nifty closed at a high of 4850 points, making a gain of 106 points.

    Positive Global cues and an upgrade on India’s rating by rating agency Moody’s helped boost market sentiment. China’s trade data also gave a positive fillip to the market.

    Sudip Bandyopadhyay, MD and CEO, Destimoney Securities said that while the markets were in a positive mood, and the upgrade from Moody’s will help Indian companies borrow from foreign markets at a slightly better rate, but the market may soon fall.

    Moody’s raised India’s debt rating to investment grade. The rating agency had upgraded India thrice in December 2011 also.  The markets have also been expecting a rate cut after 13 successive hikes by the RBI throughout last year.

    Broader markets were also in the green. The BSE 500 index ended 2.25 percent higher from its previous close.

    The market breadth was positive with 2,137 stocks advancing, compared to 671 on the decline. Another 105 remained unchanged. Prominent gainers on the 30-scrip Sensex included M&M, up 5.63 percent at Rs.689.85; Hindalco, up 4.28 percent at Rs.123; L&T, up 4.24 percent at Rs.1,134.55; and Jindal Steel, up 4.12 percent at Rs.499.20.

    There were only two losers on the 30 scrip Sensex: TCS, down 0.41 percent at Rs.1,16.80 and GAIL India, down 0.16 percent at Rs.380.90.

    According to data available with the Securities and Exchange Board of India (SEBI), foreign institutional investors bought stocks worth $2.35 million Tuesday.

    Asian markets were mixed as investors hoped for some concrete steps from leading Euro zone economies France and Germany towards resolving the Euro debt crisis. The Japanese Nikkei closed 0.38 percent up at 8,422.26 points.

    Hong Kong’s Hang Seng rose 0.73 percent to close at 19,004.28 points, while the Chinese Shanghai Composite index gained 2.69 percent and ended at 2,285.74 points. The South Korean Kospi closed 1.46 percent up to end at 1,853.22 points.

    European markets were trading higher with traders optimistic about the upcoming European earnings season. Britain’s FTSE 100 was ruling 1.02 percent up at 5,669.37 points, while the German DAX was trading 2.19 percent up at 6,148.85 points. However, the French CAC 40 was ruling 2.07 percent higher at 3,192.33 points.

     

    IANS inputs