Sensex adds 260 pts; global cues lift sentiment

MUMBAI: Stocks bounced off previous lows early on Wednesday triggered by positive global cues and as crude oil declined further

“Expect the banking, real estate and auto stocks to breathe a little easy as US markets rebounded on rising consumer confidence and sliding oil. But don’t expect many fireworks in our market beyond the opening hour,” Anagram Stock Broking said in a note.

At 10:10 am, the Bombay Stock Exchange’s Sensex was up 260 points or 1.88 per cent at 14,051.24.

Biggest Sensex gainers were HDFC Bank (4.48%), ICICI Bank (3.44%), HDFC (3.01%), Jaiprakash Associates (2.97%), Tata Motors (2.82%) and BHEL (2.63%).

NTPC (-1.82%), Hindustan Unilever (-0.36%) and ITC (-0.16%) were the only losers. Market breadth on BSE showed 797 advances against 100 declines.

The National Stock Exchange’s Nifty was up 59 points or 1.4 per cent at 4248.55. The index touched a high of 4263.20 after opening at 4191.20.

“Any level above 4300 in the Nifty may be good to take a snipe at the benchmark. Today a parliamentary committee would start looking into the money-for-vote issue and with the derivatives settlement tomorrow, don't expect the market to run beyond the periphery,” the brokerage added.

Given the steep interest rate hike announced by the central bank Tuesday, most analysts say the early morning rally will be short lived as concerns over economic growth will likely take centre stage.

Shares soared elsewhere in Asia as the price of oil fell further and on the back of some positive corporate results. Export oriented shares led the rally as the yen declined against the dollar. The Nikkei 225 was up 1.27 per cent, the Hang Seng added 2.16 per cent and the Straits Times gained 1.28 per cent.

US stocks rose on Tuesday as improved consumer confidence and lower crude prices offered some respite to ongoing concerns about the economy. The Dow Jones Industrial Average rose 2.39 per cent, the Standard & Poor's 500 Index gained 2.33 per cent and the Nasdaq Composite Index added 2.45 per cent.

The prices of oil fell to its lowest level in nearly three months on Tuesday, ahead of a weekly US report on energy stockpiles. Crude was at $122.2 a barrel.