Markets end higher; Draghi comments help

Commentary

oi-Sunil

By Sunil Fernandes

Updated: Friday, July 27, 2012, 15:48 [IST]

Markets ended the day higher, following strong closing in Asia, after comments from ECB President Mario Draghi that the authorities would do everything to help the Euro, sparked a rally across global markets.

The BSE Sensex ended the day higher by 199 points, while the S&P CNX Nifty gained 56 points. Metal stocks rallied sharply on hopes that stimulus measures around the globe would spark a rally in commodities. Sterlite Industries and Tata Steel both gained more than 3%, while Hindalco ended the day higher than 2%.

Private sector bank ICICI rallied after its profits beat street estimates. However, other PSU banks declined sharply after PSU Banking major PNB and Union Bank of India's results disappointed. State Bank of India too declined sharply in trade losing more than 3%. Other losers among the S&P CNX Nifty stocks included Bhel and Hero Motor Corp.

Shares of Maran owned Sun Network and SpiceJet plunged today on reports that the Central Bureau of Investigation (CBI) has questioned the Maran Brothers in Aircel-Maxis deal.

Europe was trading lower, with the French CAC, the German DAX and UK's FTSE all down, after witnessing a spectacular rally on Thursday.

Markets are expected to be volatile and largely news driven.

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