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Sensex witnesses splendid pullback; Tech finds new takers

The benchmark Sensex saw a sharp rebound on Wednesday, rallying nearly 400 points in the opening trade, which was on expected lines following a strong pull back in global markets.

August 10, 2011 / 09:38 AM IST

Indian benchmark indices witnessed a magnificent pullback on Wednesday following a splendid bounce-back in the US markets; courtesy Fed's announcement that interest rates will stay near-zero for the next two years. The euphoria was reflected in the market breadth. The advance-decline ratio stood at 7:1.


The benchmark Sensex rallied nearly 400 points in the opening trade on short covering. However, there was some profit booking at higher levels as a few investors sold-on on the rally. The 30-share Sensex jumped 293 points to 17,151 and the 50-share NSE Nifty went up 92 points to 5,165. 


Most beaten sectors like metal, realty and technology saw huge buying interest. Sterlite Industries, HCL Tech, Infosys and TCS were up 3-4%.


DLF was up 4% and Tata Motors gained 4%. Anil Dhirubhai Ambani group companies' shares like Reliance Power, Reliance Capital and Reliance Infrastructure too rallied 4-5%.


In the banking space, ICICI Bank, Axis Bank and SBI were up 2-3%.


However, HUL fell half a percent.


The CNX Midcap rose 147 points to 7,657. Market breadth was in favour of advances - about 611 shares were advancing as against 54 shares declining.


Mahindra Satyam shot up 10% on stellar performance in April-June quarter of 2011. PAT of the company stood at Rs 225.2 crore in Q1 as against loss of Rs 327 crore in previous quarter and EBITDA shot up to Rs 210 crore from Rs 178.3 crore quarter-on-quarter.


United Breweries and GSPL gained 2.5-3% post first quarter numbers. Adani Enterprises went up 2% ahead of quarterly numbers.


High beta - Suzlon Energy jumped up 4%.


VIP Industries and Lovable Lingerie were up 3-4%. Gujarat NRE Coke, Firstsource and Jubilant Foodworks too rallied around 5%.


Global cues


Asian markets too bounced back after big sell-off in last few days. Shanghai, Nikkei, Hang Seng, Kospi and Taiwan were up 1.5-3%. However, Straits Times fell 0.9%.


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The US equity markets witnessed best single session gain in last 2 years amid huge volatility on Tuesday. Federal Reserve pledged to keep interest rates near zero through mid-2013. Gold slipped nearly USD 40 from intra-day highs.

Markets sold immediately post Fed statement as Fed didn

first published: Aug 10, 2011 09:18 am

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