Nifty ends expiry above 5K; global cues, heavyweights aid
27 May 2010
The benchmark Nifty showed magnificent recovery in last two days and closed above 5,000 mark on May expiry day, led by strong global cues and buying in heavyweights.
Global cues led the support today's as well. European markets rallied 2-2.4% at the time of closing of Indian equities post China's comments on investments in Europe and Prudential-AIG deal may be called off. Asian markets closed 1-1.6% higher.
Europe remains a key investment market for China's foreign exchange reserves, the Chinese central bank said on Thursday, helping to soothe markets unnerved by a report that it was reviewing its euro-zone bond holdings. That report was groundless, said SAFE, the arm of the central bank that manages China's USD 2.4 trillion in foreign exchange reserves, the world's largest stockpile. "Europe was, is and will remain one of the major investment markets for China's foreign exchange reserves," it said in a statement on the central bank's website.
Shareholders holding up to 15% of British insurer Prudential Plc's shares plan to write to the chairman saying they oppose the company's USD 35.5 billion takeover of American International Assurance's (AIG) Asian arm, the Times reported in its Thursday edition.
The US index futures also rallied; Dow and Nasdaq futures gained 2% each. The US markets were eyeing US weekly jobless claims and first quarter US GDP data today.
The 30-share BSE Sensex closed at 16,666.40, up 278.56 points or 1.7% and the 50-share NSE Nifty rose 85.70 points or 1.74% to settle at 5,003.10. However, the Nifty June futures closed at 18 points discount, as per provisional data.
