Sensex soars on global bounce...Nifty ends above 5600

BSE Sensex ended at 18,722, adding 286 points. ItNSE Nifty closed at 5,634, adding 92 points.

After meandering for the past two days, the Indian market sprung back to life on Friday, powered by positive cues from the overseas markets. Equities surged across global markets after European leaders agreed to a new US$229bn bailout plan for debt-plagued Greece that includes private sector support. They also strengthened their 440-bn euro rescue fund to buy debt of the struggling eurozone nations.


Talk that President Obama may be close to reaching a compromise with the House Republicans also buoyed the sentiment partially.


Axis Bank was in the limelight after announcing better than expected quarterly earnings. Even Jet Airways and Praj Industries impressed with their earnings. In the coming days, the focus will be on the RBI’s policy action, F&O expiry, monsoon and the parliament session.


Market breadth was quite healthy. On the BSE, 1574 stocks advanced as against 1286 that declined while 166 stocks remained unchanged.


"A fairly listless week ended with a bang, helping the main indices gain almost 1% each. But, overall things remain pretty choppy and uncertain. There could be further advance if global markets remain supportive. The real test will be the 200-DMA levels.


The fact that we will have a RBI policy review and F&O expiry next week will make proceedings even more interesting. Corporate results will keep pouring as well. A slew of global economic statistics are also due next week. All in all, next week promises to be action packed,"says Amar Ambani, Head of Research, IIFL - India Private Clients.


The BSE Sensex ended at 18,722, adding 286 points. It had earlier touched a day's high of 18,747 and a day's low of 18,533. It opened at 18,565.


The NSE Nifty closed at 5,634, adding 92 points. It touched an intraday high of 5,642 and a day’s low of 5,567. It opened at 5,577.