The Hindu Business Line : Sensex rises 383 in late surge

Mumbai, Aug 5 The fall in crude to below $120 a barrel and the positive opening of the European markets pushed Indian equities to a gain of 2.5 per cent on Tuesday.

The Indian market opened flat because of the weakness in the Asian markets which closed in the red on Tuesday, as well as on cues from the weak overnight US markets.

However, as the European markets opened the Sensex gained 383 points in a late surge, closing very near to the 15,000-mark at 14961. The Nifty closed above the 4500-mark at 4502.85, up 107 points.

“Crude trading below $120 a barrel and the positive opening of the European markets led to a sharp rise in the Indian market in the afternoon,” said Mr S. Ranganathan, Head of Research, LKP Securities.

“For the last few sessions, the Indian markets have been moving away from the global trend and progressing on internal strengths,” said Ms Anita Gandhi, Head of Institutional Business, Arihant Capital Markets.

“With the prime lending rates raised, the chances of banks making higher profits are luring investors to the undervalued bank shares,” she said.

Banking and realty stocks gained more than 6.5 per cent while the automobile sector moved up by more than 4 per cent.

The BSE Midcap and Smallcap indices gained 1.76 per cent and 1.26 per cent respectively.

There was mixed response from institutional investors; FIIs were net sellers of equities worth Rs 397 crore while domestic institutional investors were net buyers of equities worth Rs 287 crore, according to the provisional data released by BSE and NSE.

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