The Stock markets bounced back sharply by 4.26 per cent in frenzied buying in battered pivotals along with short covering after four straight days of catastrophic fall. With crude oil falling steeply and global markets recovering, the benchmark Sensex shot up by 536 points to 13,111.85.Asian and European stocks rallied today, propelled by the biggest surge in US bank shares in 16 years and a sharp drop in oil prices, easing the worst fears about the global credit crisis spiralling out of control. US crude futures were $1.04 a barrel lower at $133.56 a barrel, after sliding $4.14 on Wednesday. Prices have dropped by more than $13 from last Friday’s all-time peak of $147.27.“The fall in crude oil prices was the biggest relief. However, the market is still worried about inflation crossing the 12 per cent-level. If crude oil prices fall by another $10 per barrel, there will be another big rally on the stock markets,” said a BSE dealer.The BSE Sensex had shed 1,350 points or 9.67 per cent in four trading sessions to 12575.80 on July 16 from 13,964.26 on July 9. Apart from high oil prices and weak global markets, other factors like political uncertainty in India and withdrawal of foreign funds from Indian markets also dampened the local sentiment. Besides, some of the early results from tech companies were also far from encouraging. “Some of the stocks were so much beaten down that bargain hunters had a field day on Thursday. This prompted some bear operators to cover their short positions,” market circles said. In the broader market, 1,528 gainers overwhelmed 1,086 losers on volume of 265 million shares. Top listed firm Reliance Industries rose 3.6 per cent to Rs 2,015.55 and No 2 lender ICICI Bank ended up 6.1 per cent at Rs 551.20 on short covering after falling 7 per cent and 17.5 per cent respectively this month.Bringing relief to marketmen, markets in Japan, Hong Kong, Taiwan, Singapore and South Korea were up by between 1 per cent and 3.93 per cent. US markets had surged on Wednesday, led by financial stocks, after unexpectedly strong results from Wells Fargo & Co, the fifth-largest US bank and mortgage lender, eased worries about the on-going credit crisis. The Dow Jones industrial average soared 276.74 points, or 2.52 per cent, to 11,239.28.The world goes up •Markets rebounded sharply in frenzied buying in battered pivotals along with short covering •Asian and European stocks were propelled by the biggest surge in US bank shares in 16 years •Markets in Japan, Hong Kong, Taiwan, Singapore and South Korea were up by between 1% and 3.9%
