Sensex bucks global fall on IIP boost

Indian stocks bucked a global sell-off, which saw Asian stocks falling to their biggest loss in three weeks, after investors judged that the domestic economy may be decoupled from a recession in the United States.

This assessment was strengthened by the Index of Industrial Production (IIP) figures "� released midway through the markets "� showing that the industrial production grew to a seven-month high in October.

Tracking Asian markets, the benchmark Bombay Stock Exchange's Sensex fell by over 200 points immediately on opening in the absence of any positive surprises in the US Federal Reserve's small 25 basis point interest rate cut on Tuesday.

But stocks recovered soon enough to end the day in positive territory. Sensex ended at 20,375.87 points, up 84.98 points, or 0.42 per cent.

The broad based S&P CNX Nifty of NSE ended at 6159.30 points, up 62.05 points or 1.02 per cent. Key global indices Dow Jones Industrial Average (down 294.26 points or 2.14 per cent), S&P 500 (down 38.31 points or 2.53 per cent), Hang Seng (down 705.78 points or 2.41 per cent) and Straits Times (down 39.78 points or 1.11 per cent) were in the red.

Barring the benchmarks in India, the only other Asian index that was in green was the Seoul Composite (up 2.38 points or 0.12 per cent).

"The markets recovered after the first half an hour showing some strength. Positive IIP data boosted market sentiment as there was some buying," said S Krishna Kumar, fund manager and head-research, Sundaram BNP Paribas MF.