Market bounces back to turn positive

Mumbai, June 7: The Bombay Stock Exchange (BSE) Sensitive Index (Sensex) today suddenly rebounded by 38.97 points at 14,294.90 during early trade, as buying momentum increased tracking an intra-day recovery in Asian markets, especially China's Sanghai Composite index which was up by 2 per cent at 3,851.86.

It had earlier opened weak at 14,195.84 from it's previous close of 14,255.93.

Among the broader markets, the National Stock Exchange (NSE) Nifty Index also recovered by around 9 points to touch 4,207.00 from it's previous close of 4,198.25, after opening marginally lower at 4, 197.60.

Market analysts pointed out that the turnover on the premier BSE surged when the market bounced back catapulting it to Rs 1,290 crore. They explained that the market breadth, which was negative in opening session, turned positive, as buying emerged for small and mid-cap stocks and added that 1,258 shares advanced while 893 declined and 67 remained unchanged. Among the Sensex pack, 21 advanced while the rest declined.

The major gainers till now include Hindalco Industries, Reliance Communications (RCOM), Gujarat Ambuja Cements, Cipla, Reliance Industries (RIL), State Bank of India (SBI), Oil&Natural Gas Corporation (ONGC), Suzlon Energy Industrial Finance Corporation of India (IFCI) and Tamilnadu Petroproducts.

On the other hand, the top loser among the Sensex pack was Hero Honda.

Asian markets were weak but some of the markets had recouped early losses. Japan's Nikkei was down just 0.02 per cent at 18,037.73. Earlier during the day, it had shed about 0.8 per cent.

South Korea's Seoul Composite had moved into the green from red, during the day. It was up 0.62 per cent at 1,753.04. Taiwan's Taiwan Weighted was up 0.49 per cent or 8,355.26. Hang Seng lost 0.57 per cent to 20,700.92.

US stocks slid for a second straight session yesterday, after an increase in labour costs stirred concerns about inflation and interest rates and as the yield on the benchmark 10-year treasury flirted with 5 per cent. The Dow Jones fell 129.79 points, or 0.95 per cent to 13,465.67, losing more than 210 points in two days.

Broader stock indicators also fell. The Standard&Poor's 500 index fell 0.89 per cent, to 1,517.38, and the Nasdaq composite index fell 0.92 per cent to 2,587.18.

Yesterday, the European Central Bank (ECB) raised its key interest rate a quarter percentage point to 4 per cent, which is the eighth increase in 18 months, and the highest reading for five and a half years. It also signalled that a further hike could come, perhaps in the month of September this year to combat inflation in a dynamic eurozone economy.

Oil prices were higher in Asian trading after news that refinery production in the US fell last week at the same time as the peak season there for demand for gasoline began. The New York Mercantile Exchange's main oil futures contract, light sweet crude for delivery in July, was up by USD 0.07 at USD 66.03 per barrel from USD 65.96 in late trading in the US overnight. Brent North Sea crude for July had added USD 0.05 at USD 71.07.

UNI