Finance Minister P Chimabaram’s promising remarks just before the opening of bourses today had an electrifying effect on stock markets as benchmark Sensex opened on a strong note and went on to notch up an impressive gain of over 780 points to regain the 11,000 level at close.
Leaving behind last week’s deep worries and mounting losses, Bombay Stock Exchange’s 30-share barometer rose by 781.24 points, or 7.42 per cent, to settle the day at 11,309.09 points.
The Sensex had lost a huge 2,527.82 points, or 19.36 per cent, during the past five days. The 50-share Nifty of the National Stock Exchange also surged by 210.75 points, or 6.43 per cent, to 3,490.70 from its last close.
Marketmen credited the rise in shares also to concerted efforts by the market regulators and the governments worldwide to address the global liquidity crunch. They said domestic institutional investors indulged in hectic buying, pushing the Sensex up.
Asian and European markets also snapped their losing spree with key indices in the regions gaining nearly in the range of 5-10 per cent.
Australia’s all ordinaries index gained 5.14 per cent while Asian indices ended higher by about 4.0 to 10 per cent. European markets also were sharply up in their morning trade.
Chidambaram said the government was working on measures to tide over the situation and hoped to announce them shortly.
After the last week’s meltdown, Chidambaram advised stock market to take a cue from the “positive developments” in the Australian and other three of the East Asian capital markets.
The Reserve Bank of India has released Rs 60,000 crore in the system through a big 1.5 per cent cut in the Cash Reserve Ratio effective from October 11.
