Mumbai: The market snapped four-day losing streak on Tuesday after rallying 500 points intra-day, aided by strong global support and short covering in the most beaten down stocks. Expectation of a well co-ordinated bailout plan for Europe triggered a rally across globe. The 30-share BSE Sensex shot up 472.93 points or 2.95 per cent, to close at 16,524.03 and the 50-share NSE Nifty rose 135.85 points or 2.81 per cent, to end at 4,971.25 led by broadbased buying.
Experts, however, remained nervous despite today's rally. Mehraboon Irani of Nirmal Bang Securities said the bounce could stretch a little bit further. But the trend remains down, he says.
Abhijit Paul of Brics Securities said the market has been in a wide range of 5200 on the upside and 4700 on the downside as a support. He still feels a possible test of 4430-4480 for the Nifty Future is very likely.
There were reports that some portion of bailout plan (European Financial Stability Fund) may be used for Europe Central Bank and other portion for European Investment Bank as a seed capital. Other reports suggested that Greek's debt may be waived partially by European banks.
European markets like France's CAC, Germany's DAX and Britain's FTSE were trading 2-3 per cent higher. Even the Dow Jones and Nasdaq futures too rose 1 per cent each. Asian markets gained 3-5 per cent at close; only Shanghai rose just 0.9 per cent.
Commodities bounced back sharply as well after yesterday's sell-off. Precious metals like gold rose 5 per cent to $ 1674.85 an ounce and Silver shot up 9.7 per cent to USD 32.88 an ounce in the international market.
Among others, copper gained 3.3 per cent. Brent Oil rose 1.26 per cent to $ 105.25 a barrel and NYMEX crude oil surged 2.5 per cent to $ 82.26 a barrel.
On the home turf, every sector joined the bulls' party and even 48 out of 50 stocks were on buyers' radar.
The BSE Realty Index jumped 4.66 per cent. IT and Oil & Gas indices rose 3.5 per cent each. Bank, Auto, Metal, Power and FMCG indices gained 2-2.7 per cent.
Heavyweight Reliance Industries was the real hero today; it shot up 5 per cent to near Rs 800 level.
TCS, Infosys, BHEL, Cairn India, ICICI Bank, HDFC and HUL gained 3-4 per cent. ITC, ONGC, Bharti Airtel and HDFC Bank were up 1.6-2.7 per cent.
DLF was the biggest gainer on Nifty led by short covering; the stock rallied 8 per cent. Tata Motors and Jaiprakash Associates climbed 6 per cent each. However, Cipla and BPCL were only losers.
About two shares gained for every share falling on BSE. The broader indices gained 1.4-1.6 per cent.
Tuesday's volume was low as compared to previous day. Total traded turnover was more than 1.78 lakh crore as against more than Rs 2 lakh crore seen on Monday.
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