Widespread Gains

Stocks rebounded to close with widespread gains on the Delhi stock market yesterday after frantic purchases by domestic financial institutions and speculators followed by huge short-covering.

Stock brokers said the rally was mainly influenced by several measures announced by the Reserve Bank of India (RBI) on Friday to arrest free-fall in rupee against US currency. As a result, the rupee turned stronger against the dollar in the forex market yesterday.

The RBI has hiked bank rates by two per cent to 11 per cent which is likely to improve banking sector earnings in short term. Appreciation of the rupee also boosted market sentiment, said Manoj Ohoraria, a DSE stock broker. The Delhi Stock Exchange Sensitive Index shot up by 16.35 to close sharply high at 736.79 points. State Bank of India stocks rallied smartly by Rs 12.30 to close at Rs 258.65 and Oriental Bank of Commerce shares gained Rs 1.30 at Rs 60.90.

 

Corporation Bank shares shot up by Rs 5.75 to close at Rs 113.75 after touching Rs 114, ICICI Banking Corp. Shares gained Rs 4.10 at Rs 48.10 and Bank of Rajasthan shares rose Rs 1.85 to Rs 58.10.