Bullish force in the market; Sensex rises 579 points

Mumbai : A rally in Asian capital markets, including the US and general buying by domestic investors, kept the gains for the second consecutive session on Tuesday. Apart from the ongoing sell-off for the last few days, foreign investors also bought in the market.

As expected volatility hit India’s capital markets too, the Bombay Stock Exchange index Sensex ended the day higher by 578.51 points or 0.98 per cent at 59,719.74. The Sensex rose 964.56 points to touch an intraday high of 60,105.79. The National Stock Market Index Nifty also closed at 17,816.25 with a gain of 194 points. However, the index failed to cross the 18,000-degree mark at the end of the day. Its all-time high stood at 17,919.

The decline in Western capital markets had no effect on the domestic market. Furthermore, although an interest rate hike by the US central bank is inevitable, domestic investors continue to buy shares, ignoring it. Investors buy every fall in the market. At the same time, the decline in the shares of pharma and IT companies has stopped in the last few sessions and investors preferred to buy shares at low prices. Vinod Nair, Head of Research, Geojit Financial Services, said foreign investors have also become active as shares of Indian companies are much more valuable than the rest of the world amid adverse global economic conditions.

Sun Pharma, Dr Reddy’s, IndusInd Bank, Tata Steel, Titan, Bajaj Finsar, ICICI Bank and Asian Paints were the top gainers in the Sensex.

Flow from ‘FII’

According to data available with the Mumbai Stock Exchange, foreign institutional investors (FIIs) bought shares worth Rs 312.31 crore in Monday’s session. Ignoring a possible interest rate hike by the US Central Bank – the Federal Reserve, FIIs start re-engaging in the Indian capital market.

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