Mumbai, March 8: Bolstered by strong overseas markets and hectic short-covering, the sensex today leapt by 470 points, its biggest rise in nine months. In doing so, the benchmark index breached past the 13000-mark to finish at 13049.35. What was heartening about the rally was that it was broad-based and it nearly covered the entire market.
The advances to decline ratio was tilted in favour of the former by at least 2 times. Apart from heavyweights like Reliance Industries and Infosys, all the sectoral indices at the exchange ended in the green. Even as buying was witnessed in many of the beaten down scrips, mid-cap and small cap stocks, which had exhibited a sluggish trend, also participated in the rally.
It was a good day for the markets. We began well as the news coming from overseas market was good. After that, the momentum was never lost. During the end of the trading session, there was a sharp jump due to short-covering, an analyst said. However, not many are willing to stick their necks out and say whether this is the beginning of a sustainable rally. It is feared that though the bears were beaten today, they could stage a comeback soon.
We have the inflation numbers coming in tomorrow. This could set the stage for the next few trading sessions. Then there are the corporate numbers, which will begin to come in from next month, the analyst added. Foreign institutional investors (FIIs), the key players in equities, were net buyers yesterday.
Though they made purchases of Rs 84 crore, market observers fear these investors could choose to book profits during a rally. The sensex today resumed with a wide gap at 12649.77 and gradually moved upwards to the intra-day high of 13099.83, a huge 520 point gain, before ending at 13049.35, a net rise of 469.60 points or 3.73 per cent.