Sensex rises 384 pt on Anil’s truce

Mumbai, Oct. 12: The markets on Monday soared by over 380 points to regain the 17,000-level after the investor sentiment was bolstered by the robust industrial production in August and hopes of a truce between Ambani brothers.
The markets witnessed a frantic rally soon after the news of 10.4 per cent growth in the industrial output, the highest in 22 months, came out.
Brokers said that the atmosphere was euphoric with a slew of goods news adding to the festive cheer.
The BSE benchmark index, Sensex, opened on a strong note after Mr Anil Ambani on Sunday extended an olive branch for peace with Mr Mukesh Ambani, fuelling investor hopes of an end to one of the most intense corporate battles.
The market also got support from the Prime Minister, Dr Manmohan Singh’s statement that the economic growth will accelerate. Brokers said that investors, fortunes of many of them are tied up with the firms run by Ambani brothers, cheered the development. Brokers said while the latest in the Ambani episode gave the push, what propelled the market to 17,000-level was 10.4 per cent industrial growth which had beaten the expectations. “Backed by good IIP figures, the positive news on Reliance front drove the market. Among the top 20 gains in F&O segment in the Nifty, four were from the Reliance pack — Reliance Infra, RNRL, RelCap and Adlabs. It is not easy to say that Ambani dispute will soon be over but at least some steps are taken towards it and that gave a positive boost to the markets, said SMC Global vice-president Mr Rajesh Jain.
The 30-share index finally settled the day at higher by an impressive 384.01 points or 2.31 per cent at 17,026.67
Source::DC