NIFTY FUTURE TIPS 06 JUN 2012

SENSEX SURGES 303 POINTS; AUTO, FMCG STOCKS HOG THE LIMELIGHT

DATE: 06/06/2012       

Indian benchmark indices, the Sensex and the Nifty, gained over 1.8 per cent in the afternoon session on Wednesday on heavy buying by funds and retail investors driven by rate cut hopes amid firm Asian cues.

30-share BSE index Sensex was up 302.68 points or 1.89 per cent at 16,323.32 and the 50-share NSE index Nifty was up 93.25 points or 1.92 per cent at 4,956.55.

Volume toppers were Tata Motors, SBI, L&T, RIL and ICICI Bank. Among 30-share Sensex, Tata Motors, Jindal Steel, Hero MotoCorp, ITC and Sterlite Industries.

All BSE sectoral indices were trading in the green. Auto (up 3.1 per cent), FMCG (up 2.67 per cent), power (up 2.37 per cent) and realty (up 2.35 per cent) stocks were the star performers.

The Nifty and the Sensex opened half-a-per cent up over their previous close. The Nifty opened at 4,887, up 23 points and the Sensex opened at 16,100, up 64 points.

Dealers said that the stock market rally this week was a technical pull-back on huge oversold positions. Positions are said to be oversold when sales of a stock exceed purchases resulting in prices declining sharply.

“Risks from Europe still loom large,” said the Head of Research of a multinational brokerage.

“With Spanish bond yields hovering close to seven per cent levels, the country needs money urgently to refinance its debt of about €800 billion. If that does not happen, we are in for hard times ahead.”

POWERED BY: BUSINESSLINE NEWS

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