Powered by strong bull run in the global markets, the Indian indices closed with huge gains on Wednesday. After recording single day's biggest ever gain, the Sensex closed the day at 19,959, up 923 points. Nifty was up 242 points to shut shop at 5,937.
The market breadth depicted the picture very well, with 936 advances to 266 declines. The Indian markets followed the foot-steps of other global markets which posted string gains following good rally in the US markets. The banking stocks stole the show on Wednesday with stellar performance coming in from all major banks.
On Tuesday morning, we tested 5500 and broke that and then Nifty managed to hold on and pulled back nicely. On Wednesday it was almost the perfect follow-up. In fact, since morning the market was looking strong.
It was little tentative in the first one hour of trade as it drifted in and out of the red because global markets were also consolidating and finding their feet, but then there was no two ways about what the market wanted to do.
Mid-caps led from the front and that was a very, very good indication of what the mood was like. And at the second half of the day, market just tore away. Finally the real icing on the cake came in post 2 O’clock – political news crept in that maybe the Left was holding out a bit of an olive branch for the UPA in giving them the nod to go ahead with some talks on IAEA.
That saw the market really flare up. At one point it was up 450 points, ended with a more modest 350-point gain. But even so, from 18400-18300 kind of levels back to 19000+ for the Sensex, it has been quite a pull-back for the market. Things looked far more interesting and far more optimistic than they looked Tuesday morning.
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