Bulls tightened their grip on the Indian markets today. A sudden surge in Asian markets enlivened the domestic bourses with the Bombay Stock Exchange’s benchmark Sensex surging by 418 points to close at a two-week high of 18,660.32 on strong buying support in blue-chips Reliance Communication and DLF.The 30-share BSE barometer settled with a gain of 417.74 points, or 2.29 per cent, from Friday’s close, extending the gains for the second session today. The Sensex moved in a range of 18,895.34 and 18,439.33 after resuming sharply up at 18,496.03. The S&P CNX Nifty of the National Stock Exchange also rose by 146.25 points, or 2.75 per cent, to close at 5,463.50 from 5,317.25.“The rally on other Asian markets boosted sentiment,” said a dealer. Moreover, the rally has placed the market in a technically strong position, paving the way for a long bull run. Marketmen also ascribed the impressive surge partly to expectations of increase in liquidity as investors have started investing the refund money from the Reliance Power IPO, which had received an unprecedented response, back into the stock markets.However, the rupee came under pressure as foreign investors repatriated funds returned after recent initial share offerings, with concerns about central bank intervention further weighing on sentiment. The rupee ended at 39.44/ 45 per dollar, higher than the day’s low of 39.48, but losing ground from the previous finish of 39.35/ 36. It hit 39.16 in November, its highest in 10 years. “The outflows from the IPOs were the dominant factor today, but what’s remarkable is that the rupee has not fallen further,” said a senior dealer with a private bank.Major Asian indices closed by about 2-8 per cent, sparking off across-the-board buying support at home. The market breadth, too, turned strong with the majority of shares from all segments registering smart gains. Reliance Communications jumped 12 per cent while the the country’s largest realty firm DLF rose 8.5 per cent.
