Andrew L Dcunha

Mumbai, Aug 10: Indian market  bounced back to close above 17000 and remained on firm foot after massive sell off in last six trading days following financial shockwaves emerged from US and Europe. Global equities recovered after the US Federal Reserve decided to keep the interest rates unchanged near zero for two more years.

Bombay Stock Exchange's Sensex was at 17130.51, up 272.6 points or 1.62 per cent.

After touching a high of 17,256 The BSE Sensex moved sideways and started to slip in afternoon as pressure came from European markets and from falling Dow futures.

European markets slipped into red after positive opening. Riots in London, which is now in its fourth day, dampened sentiments in European markets. However, the indices recovered to morning levels

Global markets rose this morning, following Wall Street Hang Seng jumped 2.3% to 19,783. Nikkei was up 1%.

Gold and Oil

Gold price was volatile today but managed to rise by Rs 138 to Rs 25,869 per 10 grams in futures trade on fresh buying by speculators

Brent crude climbed above $106 a barrel on Wednesday after the US Federal Reserve's promise to extend near-zero interest rates for two more years weighed on the dollar and helped reverse a steep fall in oil. US oil rose by $3.27 to $82.57 a barrel by the same time, after plumbing session-lows on Tuesday of $79.30 a barrel.

Macroeconomy recovery is moving toward a positive direction: FM

Finance minister Pranab Mukherjee on Wednesday said India's macro-economy was moving in a positive direction and hoped international commodity prices would decline, helping the government tame inflation and cut subsidies. Mukherjee maintained that India's economic fundamentals were strong and capable of meeting any challenge posed by the downgrade of the US economy and the crisis in some eurozone nations.

Andrew L D Cunha, Managing Director, WinWin Fin  Advisory Pvt. Ltd. Mangalore. finadvisoryltd@yahoo.com