The Telegraph
Since 1st March, 1999
Email This Page
Single-day record in robust rally

Mumbai, June 15: Chirpy global markets and energetic bargain hunters today lifted the sensex from its stupor to its highest single-day gain in history.

As the benchmark index vroomed 616 points to 9545.06 at close, the market regulator, Sebi, cranked up the comfort decibel by baring its fangs at volatility.

Egged on by the strong showing of overseas indices, investors today scooped up stocks that got mangled in previous sessions at values considered reasonable by analysts.

Sentiments got a further kick from provisional data on advance tax payments by companies which rose by 15 per cent in the first quarter over the same period last year, indicating that all is well with industry.

The rejuvenated US markets pepped up the sensex which started strong at 9133.36, touched a high of 9582.97 and closed at 9545.06, a jump of 615.62 points or 6.89 per cent. Dealers said the rush was heavy in the last 30 minutes of trading.

The previous record for a single-day gain was on June 9 when the sensex bounced back by 515 points after a slide of 1156 points in the four preceding sessions. The turnaround today was after a fall of 881 points in the three previous days.

On the National Stock Exchange, the nifty soared by 166 points, or 6.5 per cent, at 2798.80, after touching a peak of 2814.15.

The BSE capital goods index did the star turn among the sectoral indices, spurting 10.30 per cent, or 595 points, to 6365.55 as investors aggressively bought scrips that had turned limp in the last few sessions

Brisk purchases were also witnessed in technology, auto and cement counters.

Analysts are now pondering over the sustenance of the current rally, with the FII selling on Wednesday causing discomfort. “Though it seems that the worst is over, we need to see whether markets consolidate at this level,” an analyst said.

For investors, harried by the huge volatility, so characteristic of the markets in recent times, relief is probably on the way.

Securities and Exchange Board of India (Sebi) chairman M. Damodaran said today the regulator was planning to curb volatility. Though he did not elaborate on the strategies, brokers said circuit filter norms may be revised.

Meanwhile, the rupee held steady today against the dollar at 45.99 after a firm start on good trade inflows and fall in dollar against world currencies.

Email This Page