Sensex moves into green, opens 685.32 pts up

Mumbai, Jan 23: The sensitive index at Bombay Stock Exchange opened at positive note, 685.32 points up at 17,415.26 from previous close of 16,729.94 on fresh buying interest after US Federal Reserve announced the key-rate cut to support its economy.

The market opened in green after seven straight days of steep fall. Stocks from banking and realty pack were at the forefront of the rally, brokers said. The benchmark Sensex opened with an upward gap and surged further to hit a high of 17,655.89 in early trade. At the day's high, it gained 929.95 points. Similarly, the broader CNX S&P Nifty index at National Stock Exchange surged 122.15 points or 2.49 per cent to 5,021.45, off early high 5276.30.

Banking and financial shares surged on hopes of rate cut from Reserve Bank of India following the Fed rate cut. Housing Development Finance Company surged 8.09 per cent. It was the top gainer from Sensex pack.

ICICI Bank gained 4.03 per cent and State Bank of India was up 4.98 per cent in the early trade. Hindalco Industries up 5.68 per cent, NTPC moved up 4.22 per cent and Grasim was up 5.61 per cent, were the other gainers from Sensex pack. Wipro was the top loser from Sensex pack as its stock slipped 3.93 per cent, Bharti Airtel declined 1.92 per cent.

Real estate shares rebounded after suffering sharp losses in the recent market meltdown. Omaxe gained 19.51 per cent, Peninsula Land was up 21.50 per cent, Parsvnath Developers gained 9.87 per cent, Housing Development and Infrastructure up 6.20 per cent, Unitech gained 7.90 per cent and DLF moved up 2.57 per cent, joined the rally.

The US Federal Reserve in a move to support the economy, cut Fed funds rate by 75 basis points. It was the largest rate cut in one shot for the first time in 24 years. Most of the Asian and European markets were trading higher after this development.

Back home market witnessed fall for the seventh straight day, yesterday, triggered by selling by foreign institutional investors (FIIs), margin call and weak global markets. Sensex plunged 875.41 points or 4.97 per cent in the previous session. At one point of time it was down 2273.93 points. But value buying and short covering helped the markets erase some of sharp losses. Nifty lost 309.50 points or 5.94 per cent to settle at 4,899.30, yesterday.

UNI