Mumbai: Positive global indices lifted the markets higher in early trade. Citigroup rescue plan, appointment of a new economic team, and talks of another economic stimulus package by January boosted global indices up. Buying is seen in banking, oil, capital goods, power, and metal stocks.
At 0956 hrs IST, the Sensex shot up 253 points to 9,156 and the Nifty gained 68 points at 2,776. CNX Midcap 100 rose 54 points to 3,340.
Tata Motors, Tata Communications, Unitech, HDFC Bank, ICICI Bank, Reliance Infrastructure, HDFC, SBI, Tata Steel, Sterlite Industries, Cairn India, Satyam, Wipro, HCL Tech, Hindalco and Reliance Industries are gainers.
Asian markets are trading higher. Hang Seng, Jakarta, Nikkei, Straits Times and Taiwan jumped 2-4 per cent. Kospi rose 1.5 per cent and Shanghai gained 0.3 per cent.
Nymex January Crude jumped nearly 9 per cent on weak USD. It is currently trading at USD 53.69 to a barrel. Citigroup rescue plan and rebound in equity markets in US, Europe helped the crude prices. There is speculation that OPEC may cut output on November 29 by 1-1.5 million barrels. China October imports rebound, jumped 4.3 per cent y-o-y. The near term range for crude is seen at $48-58 a barrel.
Gold is trading at 5-week highs and Silver shot up 9 per cent.
US markets posted the biggest two-day rally since 1987 after US government's rescue plan for Citigroup. That includes a direct $20 billion investment and $306 billion in asset guarantees. The news of appointment of new treasury team and prospects of another economic stimulus package by January also helped the markets.
The Dow gained 396.97 points, or 4.93 per cent, to 8,443.39. The S&P 500 index rose 51.78 points, or 6.47 per cent, to 851.81, and the Nasdaq composite index surged 87.67 points, or 6.33 per cent, to 1,472.02.
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