Global markets, including India, rallied on Friday to wrap up a tumultuous week as investors took heart from Wall’s Street’s gains overnight and positive economic data from the US. In a dramatic recovery, Dalal Street spurted with the Sensex recording its biggest ever-single day rise of 1,140 points or 6.62 per cent at 18,361.66. It is also the first-ever four-digit single day gain for the index. The 50-share NSE index surged 6.95 per cent to 5,383.35.The rebound was solid coming in the backdrop of carnage on the street witnessed earlier in the week. The strong rally in global markets aided the sharp surge. Stocks across the globe were buoyed today by several factors including strong corporate sentiment in Germany and a return of some confidence in the US economy after solid employment data and a congressional fiscal package. Investors welcomed details of a tax rebate for American consumers announced as part of President George Bush’s economic stimulus plan. The tax rebate will put $600 to $1,200 in most tax filers’ pockets.Markets across Asia turned in robust gains, with stocks in Tokyo and Hong Kong nearly erasing steep losses suffered earlier this week. Japan’s benchmark Nikkei 225 average surged 536.38 points, or 4.10 per cent, to close at 13, 629.16, while Hong Kong’s Hang Seng Index jumped 6.7 per cent to 25,122.37 points. Singapore’s Straits Times Index rose 3.6 per cent, ending at levels last seen on January 15.Investors were cheered by gains on Thursday on Wall Street, where the Dow Jones industrials rose for a second day after the US Labor Department said the number of people seeking unemployment benefits last week fell for a fourth straight week. “Indian markets will follow the global trend though fundamentals here are still robust. We can’t swim against global tide,” said BSE dealer Pawan Dharnidharka. Investors who were scared to touch blue chips at rock-bottom prices during the carnage came back with a vengeance. The Sensex had plummeted 2,283.76 points in just two days — Monday and Tuesday. Market-wide circuit filters were applied after an intra-day 10 per cent fall occurred in key benchmark indices in minutes of commencement of trade on Tuesday.Margin calls had created havoc on the bourses in causing the steep decline in share prices that was initially triggered by a setback in global markets and selling by foreign institutional investors. Credit crisis in the US and fears of a recession had hit global markets hard earlier in the week.The rally on Friday was across the board. Reliance Industries (RIL) rose 4.7 per cent. Banking stocks were in demand as sharp cut in US interest rates this week has reportedly increased the possibility of a 25 basis points repo rate cut by Reserve Bank of India. Real estate stocks which got a big hammering earlier this week also zoomed with the BSE realty index rising 10.41 per cent. It outperform the Sensex. The BSE Metal index which jumped 9.73 per cent, also outperformed the Sensex.BSE Sectoral IndicesAUTO Escorts 13.1%; Apollo Tyre 9.8%BANKEX ICICI Bank 11.2%; Axis Bank 9.2%CD Titan Ind. 11.0%; Lloyd Electric & Eng. 8.1%CG Kalpataru Power Trans. 18.4%; Areva T&D 10.0%FMCG Tata Tea 10.2%; United Breweries 6.8%HC Wockhardt 14.4%; Aurobindo Pharma 13.0%IT NIIT Tech. 17.1%; I-Flex 16.8%METAL Jindal Steel 19.8%; SAIL 15.0%OIL&GAS Essar Oil 24.4%; RNRL 9.7%POWER GMR Infrstr. 19.3%; Reliance Energy 11.8%PSU Neyveli Lignite 15.0%; SAIL 15.0%REALTY Unitech 17.8%; Indiabulls Real Estate 13.8%TECk Adlabs Films 22.2%; NIIT Tech. 17.1%
