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This is an archive article published on August 11, 2011
Market rallies after 8 fall in six days
Sensex up 273 pts; regains 17K mark.
Written by ENS Economic Bureau
Mumbai | August 11, 2011 01:52 AM IST
2 min read
2 min read
Asian markets clawed back some lost ground on Wednesday after the US Federal Reserve made an unprecedented pledge to keep interest rates near zero for at least two years,stemming a global equity rout for the time being. Snapping the 6-day losing streak that led to an 8 per cent fall,the BSE Sensex jumped 273 points to regain the 17,000 mark and closed at 17,130.51 as investors picked up equities at bargain levels.
Tokyo closed up more than one per cent,while the Shanghai composite index finished the day 0.92 per cent higher. The mood was more buoyant in Hong Kong and Sydney where markets rose 2.34 per cent and 2.64 per cent respectively. Investors took heart from New York,where the Dow index of 30 blue-chip stocks staged a dramatic late rally to close 3.98 per cent higher on Tuesday. The broader Samp;P 500,too,had climbed 4.74 percent and the tech-heavy Nasdaq firmed 5.29 per cent.
Commenting on the volatility in the markets,Finance Minister Pranab Mukherjee said that the government and the Reserve Bank are working in close cooperation to bring stability. Both RBI and Ministry of Finance are working together in close cooperation to ensure that whatever steps are needed. There will be no dearth of liquidity of forex, Mukherjee said.
On the US Federal Reserves decision to keep the interest rates at near zero level for two year,Mukherjee said,it will have some impact on the Indian markets which are in the process of stabilisation after witnessing huge decline.
The Sensex had tumbled 7.95 per cent in six trading sessions to a 14-month closing low of 16,857.91 on August 9 from a recent high of 18,314.33 on August 1,2011. Foreign funds which pulled out Rs 6,300 crore in August so far invested Rs 152 crore on Wednesday. Wednesdays rebound was quite broad-based. Eleven out of 13 sectoral indices on BSE were in green. Small-cap and mid-cap indices on BSE outperformed the Sensex.
The 50-issue Nifty of the National Stock Exchange also recovered by 88.15 points or 1.74 per cent to 5,161.
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