Sensex sees highest rise during muhurat trading in several years, crosses 9k-mark.
The benchmark equity index Sensex of the Bombay Stock Exchange (BSE) started Samvat 2065 with a 498.52-point jump, registering one of its biggest gains on Muhurat trading day.
The rally was in line with the rise in other global indices and the massive short covering of positions by bears. On the Diwali day last year, the stock market had closed 151 points lower at 18,907.
However, the Sensex on Tuesday closed the one-hour trading session with 6.17 per cent rise at 9,034. The broader index, S&P CNX Nifty, of the National Stock Exchange (NSE) rose 6.35 per cent or 160 points to end the session at 2,684.
| MUHUEAT MOVEMENT | ||
| Trading date | Closing points | Points change* |
| Nov 10, 1996 | 3,080.26 | 13.60 |
| Oct 30, 1997 | 3,803.24 | -131.09 |
| Oct 19, 1998 | 2,853.27 | 5.16 |
| Nov 7, 1999 | 4,650.54 | 52.09 |
| Oct 26, 2000 | 3,757.16 | 13.55 |
| Nov 14, 2001 | 3,113.04 | 35.85 |
| Nov 04, 2002 | 2,987.58 | 37.00 |
| Oct 25, 2003 | 4,802.28 | 44.91 |
| Nov 12, 2004 | 5,964.01 | 9.67 |
| Nov 02, 2005 | 8,072.75 | 128.65 |
| Oct 21, 2006 | 12,736.82 | 27.42 |
| Nov 8, 2007 | 18,907.60 | -151.33 |
| Oct 28, 2008 | 9,008.08 | 498.52 |
| * Sensex change over previous close | ||
“Technically, the markets looked oversold and the spike in share price was expected. It is a bear market rally, which could take up the indices by 10-15 per cent in the short term, but the low of October cannot be a bottom as there could be more fall in coming weeks. There are structural issues in the domestic market, but its moves are much dependent on global trends,” said stock broker Ramesh Damani.
“This rally may give a good opportunity to some traders to liquidate their positions after last week’s bloodbath. However, for long term investors it is a good opportunity to start buying and churn their portfolio when the market comes to re-test its lows,” added Ambareesh Baliga, vice-president of Mumbai-based Karvy Stock Broking.
After touching an all-time high of 21,200 points in January, the Sensex has been falling continuously as foreign institutional investors (FIIs) have pulled out money. So far in 2008, FIIs have sold $12.5 billion and the Sensex and Nifty have dropped over 50 per cent each during the current calendar year.
The sensex snapped a four-day losing streak during which it had tumbled by 2,173.83 points, or 20.34 per cent, to nearly A three-year low.
Markets around the world rose on expectations that the US Federal Reserve would cut its key interest rate by 50 basis points by Wednesday and that Europe and the UK would follow suit next week.
Shares in Europe halted their five-day losing streak on Tuesday. Key benchmark indices in France, Germany and the UK were up between 2 per cent and 8.5 per cent. In Asia, Nikkei was up 6.4 per cent after it had dropped to its lowest since 1982. Among others benchmark indices, China, Hong Kong, South Korea and Taiwan were up between 0.76 and 14.35 per cent.
The Sensex started over 440 points higher and maintained its level. The real estate sector, which has been the biggest loser in recent weeks, led the rally, rising nearly 10 per cent.
It was followed by metals, power and consumer goods, with all of them gaining over 7 per cent.
The blue chip gainers included Mahindra & Mahindra, up 12.68 per cent to Rs 279. Jaiprakash Associates rose 11.52 per cent to Rs 59.55, while Hindalco Industries shares were up 11.26 per cent to Rs 44.95. All the other Sensex stocks gained between 2 per cent and 10 per cent.
Overall market breadth looked positive as 79 per cent, or 1,865 stocks, advanced, while only 65 stocks fell on BSE.
