The markets ended firm on Tuesday with the BSE Sensex gaining 1.5 per cent to close at 11,483 levels. During the day, it touched a high of 11,870. The Nifty surged 27 points to end at 3518.
“Though the markets are rebounding, selling is coming in at higher levels. Real worry for the markets is credit crunch. For stability to return, 3-month LIBOR has to come down,” said Bharat Sheth, President (Institutional Sales), Techno Shares and Stock Broking.
While buying was seen in IT, healthcare and realty stocks, selling was visible in metal and consumer durable stocks. The BSE IT index advanced 5.2 per cent to close at 2939 points.
“Globally markets are acknowledging the efforts of the governments across the world to tackle crisis but it will take 2-3 months for the markets to settle down,” said Suhas Samant, head of portfolio management, Asit C Mehta Securities.
Among the Sensex stocks, Satyam Computers was the biggest gainer, up over 7.4 per cent. Other prominent gainers included Infosys, JP Associates and ICICI Bank.
Key Asian indices ended firm on Tuesday. Japan’s Nikkei zoomed over 14 per cent to close at 9447 levels. While South Korea’s Kospi surged 6.1 per cent, Hong Kong’s Hang Seng also gained 3.2 per cent. The European markets have opened firm with the FTSE 100 index up over 5 per cent.