"The bounce is quite impressive, but investors will remain sceptical about the sustainability of this rally," said Jagannadham Thunuguntla, equity head with SMC Capital.

1. Enthused by US plans, Sensex rises 5.1 percent
A good start by European bourses coupled with news that the Obama administration was planning
to buy $1 trillion worth of toxic assets sent Indian equities markets spiralling, with a key index
Monday closing 5.1 percent above its previous close.
A good start by European bourses coupled with news that the Obama administration was planning
to buy $1 trillion worth of toxic assets sent Indian equities markets spiralling, with a key index
Monday closing 5.1 percent above its previous close.
The 30-scrip Bombay Stock Exchange (BSE) sensitive index (Sensex), which opened at 9,040.3
points, shut shop at 9,424.02 points - a rise of 457.34 points or 5.1 percent.
Similarly, the S and amp;P CNX Nifty of the National Stock Exchange (NSE) gained 4.73 percent
from its last close to end trade at 2,939.9 points.
The BSE midcap index ended 2.73 percent higher, while the BSE smallcap index was up 2.01
percent.
'The bounce is quite impressive, but investors will remain sceptical about the sustainability of this
rally,' said Jagannadham Thunuguntla, equity head with SMC Capital.
All the 13 sectoral indices on the exchange ended in positive terrain, with the indices for banking,
metal and oil and gas stocks gaining the most.
Among the 30 composite Sensex, 29 stocks closed in the green while only one - DLF - ended in the
red.
Top gainers were Ranbaxy, up 10.8 percent at Rs.161.05; Tata Steel, up 10.39 percent at
Rs.194.40; Reliance Infra, up 9.88 percent at Rs.530.60; and Hindalco, up 9.35 percent at Rs.52.05.
The Tata Motors scrip, which shot up by 8 percent ahead of the launch of Nano, fell from its
intra-day high to close at Rs.166.05, a rise of 3.2 percent from its previous close.
The overall market sentiment was positive, with 1,629 stocks advancing, 899 scrips declining and
114 remaining unchanged.
The markets rose after the US government late Sunday said it would initially commit up to $100
billion to subsidise private investors' purchase of the 'toxic' or worthless assets on bank books.
The aim of the public-private partnerships is to buy up at least $500 billion of bad assets, and
possibly up to $1 trillion over time.
'Over time, by providing a market for these assets that does not now exist, this programme will help
improve asset values, increase lending capacity by banks, and reduce uncertainty about the scale of
losses on bank balance sheets,' US Treasury Secretary Tim Geithner wrote in an op-ed in the Wall
Street Journal newspaper.
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2. Asian markets were a mixed bag with Japan's benchmark Nikkei 225 stock average shutting shop
269.57 points higher than its previous close, while the Hang Seng, a key index of the Hong Kong
Stock Exchange ended trade 4.78 percent or 613.91 points higher at 13,447.42 points.
European markets, which came online before Indian bourses ended trade, were ruling in the green,
with the FTSE in Britain trading 1.65 percent higher and its French peer CAC 40 trading in positive
terrain, 40.56 points or 1.45 percent higher.
- Indo Asian News Service
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© Copyright 2006 India PRwire Pvt. Ltd. All Rights Reserved.
India PRwire disclaims any content contained in press releases published on IndiaPRwire.com. Issuers of press releases are solely responsible for the
accuracy of their content.