Sensex rallies on rebound in US indices

Mumbai, Aug 20 (UNI) After three straight sessions of losses, the Sensex today zoomed up by 286.03 points on the Bombay Stock Exchange (BSE) to settle in the green at 14,427.55, following a rebound at Wall Street.

''Domestic bourses opened with a bang today and had even mustered up a whopping 539 points during early trade after US stocks rallied during the last trading session as the Federal Reserve cut its key discount rate, at which it lends to banks, by half a percentage point. Besides, signs of political stability, boosted positive sentiments,'' market analysts explained.

''In a bid to end the stand-off with the Left on the nuclear issue, the Congress-led UPA government yesterday announced the setting up of an expert committee to look into the concerns raised by the Left on the Hyde Act passed by the US Congress.

Even the broader National Stock Exchange (NSE) S&P CNX Nifty advanced by an handsome 101 points to settle on positive terrain at 4,209.05.

BSE data showed that the turnover here amounted to Rs 3,819 crore. The market breadth was strong as small-cap and mid-cap stocks resumed their rally. 1,901 shares advanced while 828 declined and 51 remained unchanged. All the BSE sectoral indices advanced, except the BSE IT index. Among the 30-scrip Sensex pack, 25 advanced while five slipped.

''The fertiliser sector was the star of the day, as its shares surged on reports that government is considering a new investment policy for the fertiliser industry. RCF, Coromandel Fertilisers, Chambal Fertilisers, Nagarjuna Fertilisers, GSFC and GNFC have rallied registering gains between 10 to 21 per cent,'' market analysts noted and added that information technology (IT) stocks underperformed on concerns that the sector, which gets more than half of its revenue from the US, may face tougher market conditions if credit woes there squeeze IT spending.

Consequently, Satyam Computers, Wipro, Infosys and TCS were the prominent laggards, while HDFC, ICICI, Reliance Communications, Bharti Airtel, Bajaj Auto, Reliance Industries (RIL), ONGC and Tata Steel were the day's leaders.

In the US, the Dow Jones Industrial Average surged 233.30 points, or 1.82 per cent, to 13,079.08. The Standard&Poor's 500 index rose 34.67 points, or 2.46 per cent, to 1,445.94, and the Nasdaq Composite index was up 53.96 points, or 2.20 per cent, to 2,505.03. Besides, all Asian markets were trading higher today.

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