The Sensex has registered a new intra-day high 19,636, up 248 points from the day's low of 19,388. The index is now firm, and is up 75 points at 19,577. The NSE Nifty has added 20 points at 5,881.
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(Updated at 1303 hrs)
After the Sensex dropped more than 100 points, the index have recovered almost immediately and is trading higher by 90 points at 19,592.The Nifty has added 24points at 5,885.
This sudden bout of volatality can be attributed to the Reserve Bank of India (RBI) raising interest rates more aggressively which saw the markets drop sharply as a knee jerk reaction. However, experts now believe that the Central Bank is near the end of the tightening cycle as we have seen five hikes since March and also the LAF window has narrowed down to 100 bps.
Meanwhile, the Finance Minister Pranab Mukherjee has emphasised confidence in the growth story stating that the economy will be on the high expansion path at 9% in 2011-12.
The gainers on the Sensex are DLF and HDFC Bank up nearly 3% followed by SBI, ICICI Bank, HDFC Bank gaining nearly 2%, Maruti, ACC and Tata Motors adding 1% each.
The losers are Infosys down nearly 2%, Reliance Communications, Bharti Airtel, Sterlite , BHEL shedding nearly 1%.Cipla, Reliance Infrastructure,Jindal Steel losing 0.1% each are some of the other significant losers.
