Indices join the global rally and add another 2 per cent

Global indicators were very positive today and the markets continued their strong recovery today as well. Most global indices, including the US indices, saw substantial gains between yesterday and today. Oil prices are declining fast which should help in maintaining global growth and keep down inflation.

The indices opened on a very strong note and continued to gain strength throughout the session. The volatility and periodic profit booking seen during the last two days were absent and the uptrend never came under threat. Even the intra-day profit booking in late afternoon trades was followed by another sharp surge in closing minutes.

The news that FII's were marginal sellers in the F&O segment yesterday did not have much impact on sentiment. The decline in industrial output growth for the month of September failed to halt the trend. The traders were in no mood to book profits ahead of the weekend either.

Stocks of oil marketing companies continued their surge, helped by a further decline in crude oil prices. BPCL and Indian Oil added over 4 per cent each while HPCL gained over 3 per cent.

ONGC gained over half a per cent and Reliance Industries added over a per cent. Gail was closed with gains of over 3 per cent. Refinery stock MRPL added close to 3 per cent.