After several false starts through the course of the one-mon
th long sell-off, that shaved off more than 10% from the benchmark indices, and threatening to come back in the previous session, the bulls finally managed to loosen the stranglehold of the bears to catapult the Sensex higher by 358 points or 2% at 18449 and the Nifty up 95 points at 5527.The midcap index ended at 6827, higher by 73 points and the smallcap index ended at 8469, up 106 points. Realty, metals and banking stocks led from the front.
The day began on a tentative note after the volatility witnessed in the last hour of Wednesday's session, but the absence of any follow-up selling this morning led to the return of confidence among the market participants.
In the process, the
markets shrugged off data showing an acceleration in food inflation.
Food inflation jumped to 17.05% for the week ended 22 January 2011, its highest level since 25 December 2010, compared to 15.57% in the previous week.
The fuel price index climbed 11.61%, higher that previous week's 10.87% rise.
And the primary articles index for the week ended 22 January 2011 rose to 18.44% from previous week's 17.26% rise.
Only time will, however, tell whether the day's rally is sustainable, given that we are in the midst of a downtrend.
