Sensex shrugs off global gloom, rises 2%

Stocks ended the week on a positive note after a three-week decline. Though the indices were in red in the early hours of trading, there was a strong rally in the afternoon, led by big wigs like Reliance Industries, State Bank of India, DLF and Jai Prakash Associates.

Following global cues, the Bombay Stock Exchange Sensitive Index or Sensex opened with a negative gap of 125 points. However, buying came in at lower levels, helping the market recover.

The Sensex closed up by 187.96 points at 9,424.24 points whereas the Nifty closed at 2874.80, up 50.85 points. Yesterday, the US markets closed in the red. Both the Dow Jones and S & P 500 were down by 2.7 per cent and 3.31 per cent, respectively.

Hitesh Agarwal,research head in Angel Broking said that the positive sentiment came from the fact that this was a start of a new series. Also, after continuous correction for three weeks, institutions have started purchasing.