Sensex zooms on strong FII support

Snapping 3-session falling streak, the BSE Sensex shot up 358 points at 17,503.24 as Foreign Institiuional Investors (FII) picked up bluechips at lower levels amid strong global cues as the Greek debt crisis showed signs of easing and China reported lower inflation in over 18 months. It is the biggest single-day gain for Sensex in 3 weeks, since February 15. Buying was so strong that 12 of the 13 sectoral indices made gains, while 23 of the 30 BSE Sensex scrips closed in the green. Sectorally, metals, capital goods, bankex, consumer durables, realty, auto and PSU stocks led the gains. ICICI Bank, HDFC, L&T, RIL, SBI, Tata Motors, Tata Steel, Jindal Steel, HDFC Bank, Bharti Airtel, TCS, Sterlite and Hindalco added over 325 points to the Sensex gain. Globally markets were up on reports of support for Greek government bonds that has paved the way for the debt-ridden country’s second bailout. Besides, China’s inflation was 3.2 per cent year-on-year in February, the lowest growth rate since June 2010. Sensex opened sharply higher and remained in the positive terrain throughout the day. It closed at 17,503.24, up 357.72 points or 2.09 per cent. In the last three tradings in a row, it had dropped by 491.47 points or 2.79 per cent. The NSE 50-share Nifty also shot up by 113.10 points or 2.17 per cent to 5,333.55. “There was broad based buying in the market after a fall of three consecutive days. Even global markets witnessed smart rally after Greece managed to see through a deal with creditors. The Greece bail out may provide some short term relief to the markets. “In India, hope of a better Budget and RBI’s potential CRR cut have caused short covering in the market,” Rikesh Parikh VP Equities Motilal Oswal Securities said FIIs were net sellers on Thursday and offloaded Indian equities worth Rs 504.59 crore as per the provisional data from the stock exchanges. Except Singapore, key Asian markets - China, Hong Kong, Japan, South Korea and Taiwan - gained up to 1.65 per cent. European markets were trading narrowly mixed in the afternoon deals after private sector debt accepted its bond swap offer, removing obstacle to Greece’s second bailout. Major gainers from the Sensex pack were Jindal Steel (6.83 per cent), Tata Steel (6.74 per cent), ICICI Bank (6.22 per cent), L&T (5.27 per cent), Sterlite (4.66 per cent), HDFC (4.25 per cent), Tata Motors (4.18 per cent), SBI (3.79 per cent), Bharti Airtel (2.84 per cent), BHEL (2.81 per cent), Maruti Suzkui (2.51 per cent), Coal India (2.45 per cent), Hindalco (2.44 per cent), Sun Pharma (2.16 per cent), DLF (2.08 per cent), RIL (1.60 per cent) and HDFC Bank (1.47 per cent).