Sensex crosses 10,000-mark, led by metal, oil & gas, banking stocks .

Also Read   News Now Paper Specials - Sensex makes remarkable recovery, regains 17K - Range-trading may continue this week - US sleuths believe ISI had links with Headley - India not worried about US honouring n-deal: PM - Vendata expects quick nod for Orissa project More     Also Read   News Now Paper Specials More   Also Read   News Now Paper Specials   - Q3 FY09 Results: Earnings Season - Saving Satyam: Govt gets into action - India-Pakistan Tensions: Fallout of Mumbai Terror Attack - Your Money: Where to invest - Market Crash: Global worries weigh - Time Out: Books, fashion, food, travel, sports, health...  More

The Bombay Stock Exchange (BSE) benchmark index, Sensex, on Monday crossed the 10,000-mark on the back of coordinated financial and monetary measures by the government and firm global markets. The rally was led by oil & gas, banking and metal stocks.

While the Sensex was up 3.19 per cent, or 317 points, to close at 10,275 points, the broader index, S&P CNX Nifty of the National Stock Exchange (NSE), gained 2.45 per cent, or 74 points, to end the day at 3,121.

Key benchmark indices in Hong Kong, Japan, South Korea, Singapore, China and Taiwan gained between 1.4 and 5.2 per cent. In the US, Dow Jones industrial average had closed with gains of 2.94 per cent last week. 

Back home, foreign institutional investors (FIIs) made net purchases of Rs 469 crore as per the provisional figures provided by the BSE. Domestic institutional investors too purchased stocks worth Rs 220 crore on Monday.

The BSE Metal index was the top gainer, up 5.54 per cent. BSE Oil & Gas index was up 5.10 per cent and BSE Bankex was up 3.53 per cent.
 

Bank stocks rose on speculation that falling bond yields and lower rates would accelerate loan growth and profitability. Metal stocks rose after the government withdrew exemptions from countervailing duty on TMT bars, used in construction activity, and customs duty on zinc and ferro alloys. This customs duty was levied earlier to contain inflation.

However, market players are of the view that the current rally is not sustainable. “Majority of the institutional investors are cautious of the current rally and wary of the crucial data that would come out from the US in the next 10 days,” said Deepak Sawhney, Research Head at the Mumbai-based Networth Stock Broking.

Institutions are awaiting US construction spending numbers, total vehicle sales, home sales, consumer confidence, employment numbers, jobless claims and payroll numbers that would be out in the next 10 days.

Last week, the Indian government raised overseas investment limit in local corporate bonds to $15 billion from $6 billion and lifted restrictions on foreign borrowings and recapitalisation of state-run banks. Markets also got a boost as the former Chairman of ICICI Bank Chairman, K V Kamat, told the media that domestic interest rates would dip by 4-5 per cent in the next six months.

Moreover, according to a research note by Goldman Sachs’ Mumbai-based economist Tushar Poddar, the Reserve Bank of India (RBI) may cut its overnight lending and borrowing rates by another 0.5 percentage point each this month as growth slows to as little as 6.7 per cent in the year ending March 31 and 5.8 per cent in February. Goldman predicts the cash reserve ratio (CRR) will be lowered by another 1.5 per cent.

Sterlite Industries led the gainers among the Sensex pack rally on Monday. The stock was up 9.82 per cent at Rs 301. Among other gainers, Tata Power was up 7.76 per cent at Rs 830, Jaiprakash 7.49 per cent at Rs 93, Tata Steel 6.75 per cent at Rs 245, ICICI Bank 6.04 per cent at Rs 499 and the country’s largest private sector company, Reliance Industries, was up 6.38 per cent at Rs 1,365.

The market breadth on BSE looked strong as 64.29 per cent, or 1,680, stocks advanced against the declines of 32.87 per cent, or 859, stocks.

Other Stories      - Sensex makes remarkable recovery, regains 17K - L N Mittal doubles his stake in Ophir Energy - Indian handicraft firms to participate in Munich fair - Microsoft eyes Indian smartphone mkt - RIL Hazira unit bags 'Excellent Energy Efficient Unit Award' More

Read Business news in  Advertisements   Get financial advisory and solutions for your projects   Holidays starting at a delightful EMI of Rs 3481   Switch on and say hello to Monday morning !   Your dream home can now be a reality.   Visit Fortis for a preventive health check-up & get a 20% discount.   Follow the ups and downs of your investments. Try our new Portfolio Tracker   Kolkata Dock \ Freight contract for the British Gurkhas Nepal   Find how Midsize Businesses use ERP to gain competitive advantage   Trading in Forex is now as easy as 1-2-3   Discover an economical and cost effective way to market your products and services   Giftwithlove.com: Same day delivery of Flowers and Cakes to India   Download the E-book on the Future of Business Intelligence   Learn Best Practices for improving customer satisfaction   Know your customers better... download the free e-book on CRM