Key benchmark indices of BSE and National Stock Exchange (NSE) were up as global equities rose following a sharp fall in global crude oil prices by USD 6.59 to USD 114.59 a barrel on the New York Mercantile Exchange (NYME) last Friday, Aug 22. Its biggest one-day slide since 2004 after the dollar strengthened and as Russian troops began a long-awaited pullback in Georgia. Shares from interest rate sensitive sectors, including banking and real estate, were in demand. DLF and ICICI Bank gained over four per cent each. The market breadth was strong.
Later, the BSE 30-share Sensex was up 211.20 points, or 1.47 per cent, to 14,612.69. The Sensex opened with an upward gap of 241.88 points at 14,643.37, and advanced to hit an intra-day high of 14,672.69 and low of 14,612.69 in the early trade. Similarly, the S &P CNX Nifty index of NSE also resumed high at 4,317.95 points from it last close of 4,327.45 points. Later it was up by 53.90 points, or 1.25 pc, at 4,381.35.
Volatility is likely to remain high ahead of the expiry of derivative contracts for August 2008 during the week.
Shares of interest rate sensitive sectors were in demand as a sharp fall in oil price eased inflation concerns. DLF surged 4.25 pc to Rs 504.50 on 1.32 lakh shares. It was the top gainer from Sensex pack. Unitech was up 3.91 pc to Rs 164.80 and Indiabulls Real Estate gained 5 pc to Rs 297.35, were the other gainers from realty pack.
Banking shares were in demand on fresh buying. HDFC Bank rose 3.39 pc to Rs 1,235.20, ICICI Bank gained 4.21 pc to Rs 673.10, and State Bank of India also gained 2.36 pc to Rs 1,378 from the frontline banking pack, brokers added.