For the second consecutive day, the markets ended higher after a volatile trading session with the help of buying pressure in capital goods, banks, realty and power stocks. Selling pressure caused the indices to pair some of their gains and finally Nifty ended up 22 points at 5,318 and Sensex finishing trade at 17,478, up 74 points.
Banking stocks rose on expectations the cash crunch that had constrained the sector would ease in the new fiscal year thanks to government spending and a more cautious central bank. Foreign buying of Indian stocks also supported the positive sentiment. Global risk sentiment improved after China's manufacturing index rose to an 11-month high. Investors became more optimistic in April, hoping that RBI will cut rates at its April 17 meeting.
Asian and US shares rose encouraged by positive report on US manufacturing. The US report offset signs of weakness in China's services sector. The China Federation of Logistics and Purchasing said today that the non-manufacturing sector's Purchasing Managers Index rose 9.6 points from February to 58 points for March. Readings above 50 indicate an industry is expanding.
Japan's Nikkei 225 index was trading 0.4% lower at 10,065.62 and Hong Kong's Hang Seng index was trading lower at 20,638.12, up 0.6%. South Korea's Kospi index was trading 0.7% higher at 2044.45. China markets are closed for public holidays. The Dow Jones industrial average added 52.45 points, or 0.40%, to 13,264.49 at the close. The Standard & Poor's 500 Index rose 10.57 points, or 0.75%, to 1,419.04. The Nasdaq Composite Index gained 28.13 points, or 0.91%, to 3,119.70.
Sensex and Nifty opened higher following the positive cues from global peers. Sensex traded 135 points or 0.77% higher at 17,613 while Nifty rose 41 points to 5,359. This trading week will be short since on Thursday and Friday stock exchanges will be closed for local holidays.
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- Reliance Power commissions fourth 300MW unit of Rosa Plant
- Ranbaxy resumes drug export to US after 4 years
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