Sensex soars on global rebound…Nifty tops 4950

The Indian markets have turned a bit volatile ahead of the F&O expiry on Thursday. After Monday’s 30 point decline, the NSE Nifty today rallied by 3% led by gains in the index heavy weights like RIL, ICICI Bank and Infosys. Short covering was witnessed in the interest rate sensitive sectors like Realty, Banking and Auto stocks.



The BSE Sensex and the Nifty both closed near the best levels of the day.





Finally, the BSE Sensex ended at 16,524, surging 473 points. It had earlier touched a day's high of 16,552 and a day's low of 16,282. It opened at 16,289. The NSE Nifty closed at 4,971, up 136 points.



Among the other major gainers were IT, Oil & Gas, Telecom, Metals, Power and Consumer Durables.



The BSE Mid-Cap and the Small-Cap index added 1.6% and 1.3% respectively.



Technically, the market staged a strong come back. A gap-up opening above yesterday’s hammer reinforced bullish momentum and actually accelerated throughout the day. The Nifty has now re entered the trading range of 4900-5100.



“A worldwide relief rally seems to be underway right now amid optimism that European leaders will step up efforts to quell the region’s chronic credit crisis. Barring China, most Asian markets were up sharply. European equity indices also extended gains, rising 2-3%.



US stock futures also pointed to a higher opening. Not only that, precious metals rallied after Monday’s crash and the dollar declined. Crude oil futures also advanced. In short, risk tolerance has improved. But, it remains to be seen whether the current momentum sustains in the absence of concrete measures to rein in the eurozone debt crisis,” says Amar Ambani, Head of Research, IIFL - India Private Clients.