Bulls recharged; Sensex, Nifty end up over 3.4 per cent, Bank up 6 per cent

29 August 2008

It was a party day for bulls & the company. They remained charge throughout the day and did not give chance to bears for spoiling it. Frontline indices reacted positively to fall in inflation and witnessed sharp run up despite slow down in Q1 GDP growth. Rate sensitives, infrastructure, oil, metal and technology stocks led the rally. Midcap and small cap stocks also sailed in the same boat.

Markets had opened with huge gap up on the back of strong global cues and that bullishness continued for the whole day. Sensex ended with a gain of 516.19 points or 3.67% at 14,564.53. Nifty surged 146 points or 3.46% to settle at 4360. All BSE indices closed in positive terrain. Not a single stock in Sensex 30 ended in red while one stock closed in red in Nifty 50.

Better than expected inflation numbers cheered markets. Inflation declined to 12.40% for the week ended August 16 as against 12.63% while CNBC-TV18 expected around 12.79%.

GDP growth has declined to 7.9% in the first quarter as against 9.2% in same period of last year and 8.8% in previous quarter. It was a bit disappointing for markets but that was in line with expectations.

Amongst frontliners, SBI shot up by 7.19%, PNB 6.88%, BPCL 6.49%, Reliance Infrastructure 5.97%, ICICI Bank 5.93%, Tata Motors 5.44% and DLF 5.35%. However, Cairn India lost 0.52%.

Bankex was star performed of the day, jumped up by 413.28 points or 6.27% to 7,009.69. Kotak Mahindra Bank, Union Bank, Axis Bank, SBI, PNB, ICICI Bank and HDFC Bank gained 5-9%.