Sensex bounces back to end above 16K; telecom, metals lead

ALSO READ See Key Market Stats - Top Gainers/ Losers, Most Actives, Highs/Lows See how Global Markets are trading Indian ADRs Nifty BSE | NSE 10/02/12 Are Mutual Funds betting on Nifty?

The markets recovered remarkably in the second half of trade, especially post Finance Minister's and Home Minister's comments. The Sensex closed above the 16,000 mark while the Nifty ended above the 4,750 level, after recovering 3% from the day's low.

Buying in telecom, metal, realty, power, auto, oil & gas exploration, select banking and capital goods stocks helped the markets to recover. However, selling in individual stocks like SBI, ITC, Infosys, NTPC, Ambuja Cements and ACC limited the gains to some extent.

Talks on disinvestment process pushed the equity benchmarks higher in late trade. After a cabinet meeting, Home Minister, P Chidambaram said all unlisted PSUs (public sector undertakings) with a positive networth would be

Index	Closing Value	Chg (%)
METAL	14,218.25	2.93
REALTY	3,884.50	2.58
POWER	2,932.59	2.56
MIDCAP	6,115.44	2.02
AUTO	6,522.51	1.93
SMALLCAP	7,013.85	1.82
OIL&GAS	9,553.07	1.68
CAP GOODS	12,769.35	1.41
TECk	2,907.73	1.17
PHARMA	4,485.16	0.93
BANKEX	9,523.84	0.91
IT	4,440.90	-0.07
FMCG	2,791.46	-0.08

listed and a minimum of 10% of equity of all PSUs' would be held by public. He also said the government would use disinvestment proceeds for social sector for 3 years. Cabinet effectively approved sale of upto 10% in all PSUs'.

Few months back, Finance Minister unveiled new direct tax code. While commenting on the same, he said the government aimed to lower tax rates via new direct tax code.

Airline stocks witnessed buying interest, as sources said Cabinet Secretary would review FDI norm in aviation on November 17. Jet Airways, Kingfisher Airlines and SpiceJet were up 3-8%.

The 30-share Sensex closed at 16,063.90, up 151.77 points or 0.95%, after seeing recovery of 499 points from the day's low of 15,564.89. The 30-share NSE Nifty recouped loss 155 points from an intraday low of 4610.60, before closing at 4765.55, up 1.16% or 54.75 points. The broader indices outperformed the benchmark indices, gained 1.8-2%.

Recovery in European markets from the day's low also supported the markets a bit. They fell just 0.3% at the time of writing this report while they were down over 1.3% in the opening trade. The US index futures were marginally in the red.

Continued on the next page...