Some Fridays are good: Sensex ends green

Published: Sunday, October 9, 2011, 7:55 [IST]

After shedding four-consecutive sessions, stocks spurred on Friday, October 7 amid hopes from Europe. Sensex posted gains of 440.13 points or 2.79% and closed at 16,232.54 levels, while the NSE Nifty closed at 4,885.70 level with gains of 134.4 points or 2.83%.

Indian Stock Markets experienced a falling ride in past four sessions and lost over 900 points but news from Europe was enough to cheer stock market investors. Investors regained confidence and bought stocks on Friday to cover their shorts.

To save European banks from various downside risks, the European Central Bank (ECB) on Thursday announced two new reforms by providing ultra-cheap funding to banks and injecting another 40 billion euros ($54 billion) by buying back covered bonds in a coming year. The move will act as the aid to the struggling cash-strapped banks.

The news cheered the investors all around the world with most of the stock exchanges ended positive.

Before closing 440.13 points higher, Sensex touched an intraday high of 16,347 i.e. by 555 points.

The metal index closed with impressive gains of 5.39%. Meanwhile Bankex, Realty and Consumer Durables gained between 3-4%.

Other Asian markets also posted gains with Korea’s Kospi surged nearly 3% on Friday while the Hang Seng rallied more than 3%; Japan’s Nikkei closed higher to 3%.

The only market failed to end green was US, where most of its stock markets ended down, despite of better-than-expected job data.

US stocks posted mere losses as Investors in US focussed more on downgrades of the credit ratings of Spain and Italy rather than their home employment numbers.

The Dow Jones industrial average ended down on Friday just 20.21 points, or 0.18 percent, at 11,103.12. The Standard & Poor's 500 Index fell 9.51 points, or 0.82 percent, at 1,155.46. The Nasdaq Composite Index dropped 27.47 points, or 1.10 percent, at 2,479.35.

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Story first published: Sunday, October 9, 2011, 7:55 [IST]