Sensex gains 540 on Pranab talk:BL 241209

Stocks rose sharply on Wednesday, the BSE Sensex gaining by a massive 539 points, the highest in nearly
two months.The Sensex notched a 3.23 per cent rise, closing at 17,231, while the broader Nifty rose by 3.18
per cent and ended the day at 5,144.
The Finance Minister, Mr Pranab Mukherjee's reassurances on GDP growth helped bulls take control of the
entire market, causing huge short covering in the Nifty, said Mr Alex Mathews, Head of Research at Geojit
Financial Services.
The Minister's statements were only the spark, the markets rose to the extent they did because key technical
resistance levels set up by various brokerages were surpassed - roughly 17,000 for the Sensex and 5,050
for the Nifty, said market-men.This "upside confirmation" brought a momentum to buying, and the index
gains were actually heavily supported by volumes. "There was bound to be a rally," said Mr Daljeet Kohli,
Head of Research, Emkay Global Financial Services.
According to BSE data, retail players booked profits, being net sellers for Rs 313 crore. Retail investor Mr
Kalpesh Parikh sold several Nifty shares and booked profits as he wanted to take advantage of what he
perceived a "short-lived rally coupled with an uncertain future."
FIIs bought afresh, their net purchases amounting to Rs 769 crore while DIIs bought for Rs 13 crore in the
net. IT stocks were in demand due to the weak rupee and expectation of strong economic recovery (which
assures more contracts for IT companies) said brokers. Metal stocks were also hugely in demand on hopes
of global economic recovery.
The gainers on BSE were Hindalco Industries - 7.77 per cent; NTPC 6.96 per cent, Sterlite 5.05 per cent,
Reliance Industries 4.62 per cent, Tata Steel 4.45 per cent, and ICICI 4.3 per cent.