Date:05/12/2008 URL: http://www.thehindubusinessline.com/2008/12/05/stories/2008120552200100.htm

Back Stimulus package hopes push Sensex up 482 points

Realty, metal, capital goods indices gain most.

Our Bureau

Mumbai, Dec. 4 The benchmark indices surged on Thursday sparked by a drop in the domestic inflation rate, and expectations of a stimulus package from the Government to boost the economy.

The Sensex surged 5.5 per cent or 482 points to close at 9229.79 and the Nifty jumped 4.95 per cent to end the day at 2788.

The inflation rate for the week ended November 22 was at 8.4 per cent, which created hopes of a substantial cut in interest rates by RBI on Saturday, said market-men.

Indian stocks tracked the European markets which were up in early trade as the European Central Bank, Britain and Sweden made big rate cuts to shore up their economies.

However, European markets fell later, after close of trade here.

The BSE Realty, Metal, Capital Goods and Oil and Gas indices gained the most among the sectoral indices.

Tata Steel, Jai Prakash Associates and Tata Motors were the top gainers among the 30 Sensex stocks. There were no losers on Thursday in the Sensex pack.

The market breadth was positive as 1,503 scrips advanced and 668 stocks declined on the BSE.

Foreign Institutional Investors were net buyers of equities _ for the first time after the start of this month _ for Rs.307.14 crore.

Domestic Institutions were also net buyers of equities for Rs.79.24 crore.

Related Stories:
Bonds rally on rate cut expectations