The stock markets staged a sharp recovery yesterday, with the 30-scrip sensitive index of the Bombay Stock Exchange soaring 103.52 points to close at 3799.79 against the previous close of 3696.52. With I K Gujral being sworn in as the Prime Minister and the formation of the new cabinet yesterday, the market sentiment turned optimistic on the premise that political stability was set to return at the Centre.
According to leading brokers, the indices will swing between 3,800-3,850 as the budget clearance has already been factored in.
In kerb trade, the sentiment improved further, with SBI quoted at Rs 314.5 (official close Rs 311.25), Reliance at Rs 313-313.5 (Rs 307.75), ITC at Rs 427-428 (Rs 424.25) and Tisco at Rs 181-182 (Rs 178).
The market is now waiting eagerly for the financial results of Reliance Industries, to be announced today, which may have a major impact on the movement of the Sensex for the day.
While the Sensex crossed the psychological barrier of 3,800 during intra-day trade, the NSE-50 index (Nifty) of the National Stock Exchange gained 25.40 points over the last close to end at 1092.15. On the major bourses, trading was strong, with BSE clocking a turnover of Rs 929.20 crore and NSE Rs 1452.17 crore.
