Amid high volatility, Indian shares moved up Wednesday after opening higher as the US Federal Reserve stepped in to cushion the global financial crisis with a cut in interest rates, triggering positive reactions in stock markets across the globe.
The sensitive index (Sensex) of the Bombay Stock Exchange (BSE) opened higher at 17,415.26 points, with a gain of 685.32 points, over the previous day's close at 16,729.94 points.
By noon, the index was ruling at 17,311.97 points, with a gain of 582.03 points, or 3.48 percent, data with the bourse showed. All sector-specific indices were also ruling higher.
But lingering uncertainty over possible recession in the US saw the key index fluctuate wildly in a broad range of 725.57 points as investors tried to book profits at every small rise, analysts said.
Considering Tuesday's close, the peak of 17,676.60 points reached minutes after commencement of trading meant a rise of 946.66 points.
The sector-specific index for realty stocks led the upswing, followed by those for oil and gas, power, metals, state-run units, banking, consumer goods and automobiles.
Among specific stocks, Bharat Heavy Electricals Ltd was up 9.06 percent, NTPC was up 8.08 percent, Reliance Communications gained 6.92 percent, Hindustan Aluminium was up 6.72 percent and Reliance Energy rose 6.32 percent.
Ranbaxy Laboratories, Satyam Computers, Housing Development Finance Corp, Reliance Industries, Tata Consultancy, Associate Cement, Mahindra and Mahindra also made moderate gains.
Monday and Tuesday saw the barometer plummet 1,408.35 points, or 7.41 percent, and 875.41 points, or 4.97 percent, on account of panic selling, in line with the movements across the globe from Tokyo to New York.
The authorities at the Mumbai bourse had to suspend trading for an hour Tuesday, as Sensex fell below the circuit breaker level, before a pep talk from Finance Minister P. Chidambaram on the fundamentally strong Indian economy helped ease the losses.
Investors had lost $170 billion Monday in terms of market capitalisation, with another $95 billion shaved off the valuations the next day as scrip after scrip lost ground on account of panic selling.
Stung by fears of a possible recession, The US Federal Reserve had delivered a surprise interest rate cut of 75 basis points early Tuesday, which shored up market confidence across the globe, including India.
Indo-Asian News Service