SENSEX pullback rally

After an continuous fall in the indian stock market today witnessed smart pullback rally and got strengthened after Finance Minister and RBI clarifications on our present banking and financial system. This rally has been led by banking, capital goods, power, realty, telecom and oil sector stocks. Biggest contributors to this bounce back were second largest private bank ICICI Bank, HDFC, L&T, Telecom major Bharti Airtel, SBI, BHEL, Reliance Industries, HDFC Bank, TCS, NTPC and ONGC.

Benchmark indices had opened sharply lower due to steep fall in US markets, as US House of Representatives defeated the USD 700 billion bailout plan in a 205-228 vote but had managed to recover that loss immediately in early trade itself, as if it seemed like markets got factored in that news. Both indices remained strong through the day since then. European markets and US markets were up by 2%.

All these news were enough for the Indian stocks to get temporary pullback from the new lows of 2008. The Sensex closed with a gain of 264.68 points or 2.10% at 12,860.43 after hitting an intraday low of 12,153.55. It was trying to touch 13000 mark in late trade but sell off at higher levels failed to test that mark. It has touched a high of 12,995.20.

The Nifty has clawed back about 3900 mark. It rose 71.15 points or 1.85%, to settle at 3921.20. It has hit an intraday high of 3966.85 and low of 3715.05.