SeNsex joins globaL Rally As DubAi feArs fAde

Indian stocks posted big gains on Tuesday on buying support amid positive global markets. Investor sentiments in most global markets were lifted as worries about the potential fallout from the Dubai's debt crisis abated.

Dubai World has said it is in talks with lenders to restructure about $26 billion in debt out of the estimated $59 billion it owes.

The Sensex advanced 272 points to close at 17,198 while Nifty added 89 points to finish at 5,122. On the BSE, gainers easily outnumbered losers by 2,025 to 720 while 75 stocks remained unchanged.

Most of the Asian stock markets were up 1 per cent or more, with the Japanese stocks up close to 2.5 per cent. In early trade European markets had posted gains of at least 1.5 per cent or more. And Dow futures indicated a firm opening on Wall Street.

Rajesh Jain, director & CEO of Marwadi P-Sec Securities, said markets have shrugged off the Dubai crisis in some way, expecting the Middle East problem not to have a cascading effect over the global financial system.

Despite the Dubai crisis and the recent correction, some fresh buying has been seen in Indian markets, he said. “If markets succeed in getting past 5,200, then it may reach pre-budget levels of around 5500,” he said.

In the Indian markets, the realty sectoral index on the BSE was up over 6 per cent. Unitech lead the realty gainers with an 11 per cent surge. DLF and HDIL were up close to 5 per cent.

Auto, healthcare, banking, oil & gas and metal stocks also recorded good gains, with their sectoral indices up over 2 per cent. Global metal prices rebounded on Monday, rising as fears over a Dubai debt crisis eased and the dollar resumed its decline. Auto stocks were under focus as many manufacturers reported good November numbers.

Among the Sensex stocks, Tata Motors was up over 6 per cent to be the biggest percentage gainer among the pack. Sun Pharma, DLF, and M&M saw nearly 5 per cent gains. Sensex heavyweight RIL was up over 3 per cent.

Pharma major Cipla was up nearly 3 per cent after NDTV Profit reported that leading the Indian drug manufacturer is in talks with the world's largest pharmaceutical firm, Pfizer Inc, for a strategic alliance which would serve to Pfizer's needs in the emerging markets.