Andrew L D'Cunha
Mumbai, Dec 2: Jubiliant mood in the Indian stock market continued today. Sensex rallied 363 points and closed on a positive note on Friday near to its day’s high and adding 1150 points or 7.3% points since last week’s close. The Sensex closed at 16847 and Nifty closed at 5050 points up by 113 points. Sensex closed at 15695 points on last Friday November 25.
BSE Bank and Power indices gained 3% each. Metal, IT, Auto, Realty and Capital Goods indices were up 2-2.5%. Ambuja Cements gained 8%. BPCL, Tata Power, Tata Motors, IDFC, Tata Steel, Sterlite Industries and SBI rallied 4-6%.
Markets rallied in kneejerk reaction to the liquidity move by global central banks with a hope of hope of likely resolution to the European debt crisis The central banks cut the cost of borrowing dollars by 50 basis points coupled with China's cut of reserve requirement ratio by 50 basis points on Wednesday.
Asian stocks ended mixed apan’s Nikkei rose 0.5%, Hong Kong’s Hang Seng Index end 0.2% higher. However Shanghai Composite Index lost 1.1%. European shares rallied with full of optimism over a solution to the eurozone debt crisis at next week's crucial EU summit, and before publication of US jobs data later in the day. Comments from the German and French leaders reinforced expectations that a credible plan to tackle the euro-zone debt crisis may be announced soon.
Gold climbs new peak
Gold hit new high today by rising Rs 50 to Rs 29,490 per 10 grams on sustained buying by stockists amid a firming global trend. The precious metal has surpassed its previous record of Rs 29,440 per 10 grams set on November 30. Gold in global markets, which normally sets the price trend on the domestic front, traded higher by $2.80 to $1,748.10 an ounce.
Andrew L D Cunha, Managing Director, WinWin Fin Advisory Pvt. Ltd. Mangalore. Email: finadvisoryltd@yahoo.com.