Sensex climbs from two-year low to close 158 points up

Mumbai : A benchmark index for Indian equities in a late rally Thursday moved up from its two-year low and closed 158 points higher as buying picked up in recently battered stocks.

Also, release of data which showed food inflation declining from double digit levels to 9.01 percent in the week ended Nov 12 helped soothe traders who feared another rate hike by the Reserve Bank of India, the country’s central bank.

The 30-scrip sensitive index (Sensex) of the Bombay Stock Exchange (BSE) opened lower at 15,715.91 points, but closed at 15,858.49 points, 158.52 points or 1.01 percent up from its previous close at 15,699.97 points.

The Sensex had fallen 220 points to 15,479.97 points in intra-day trade.

The 50-scrip S&P CNX Nifty of the National Stock Exchange also moved up and closed in the green at 4,756.45 points — 1.06 percent or 50 points higher from its previous close.

The rupee too seemed to stabilise a bit and was ruling at 52.14 to a dollar around afternoon, as the central bank Wednesday raised interest rates on deposits by overseas Indians to attract more dollars. Companies sold dollars after the Reserve Bank of India tweaked borrowing and deposit norms.

Broader markets also ended higher with the BSE 500 index closing 1.13 percent up. The BSE midcap index closed 1.4 percent up, while the BSE smallcap index moved up 0.38 percent higher.

The market breadth was positive, with 1,460 stocks advancing and 1,313 on the decline. Another 119 were unchanged.

Among gainers on the 30-scrip Sensex are: Maruti Suzuki, up 4.02 percent at Rs.988.50; Bajaj Auto, up 3.71 percent at Rs.1,658.95; Bharti Airtel, up 3.65 percent at Rs.378.15; and ONGC, up 2.9 percent at Rs.253.45.

Major losers included Hindalco Industries, down 1.26 percent at Rs.118; Hero MotoCorp, down 0.95 percent at Rs.2,106; Sterlite Industries, down 0.67 percent at Rs.103.45; and ITC, down 0.1 percent at Rs.192.65.

Auto, capital goods, telecom and healthcare scrips were among major gainers, while consumer durable scrips ended with some losses.

Asian markets were edgy on fears that Germany too could be succumbing to a debt crisis which has engulfed many countries of the Eurozone.

The Japanese Nikkei closed 1.8 percent down at 8,165.18 points. Hong Kong’s Hang Seng closed 0.4 percent up at 17,935.1 points.

The Chinese Shanghai composite index ended flat at 2,397.55 points.

Taking cues from the recovery in Asia, European stocks were ruling in the green with traders making some value buys to buy some recently battered stocks.

UK’s FTSE 100 was ruling 0.17 percent up at 5,148.64 points, DAX was trading 1.28 percent higher at 5,527.56 points.

The French CAC 40 was ruling 1.37 percent up at 2,861.07 points.

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