Andrew L Dcunha
Mumbai, Aug 22: Indian markets bounced back sharply in the late trades on Monday amid positive global cues. BSE SENSEX ended up a 1.24% , at 16,342.51 points. The NSE index NIFTY also ended up 1.23% at 4,905.05 points on Monday. Recovery in key European indices helped the Indian markets to move higher. Reliance Industries Ltd(3.5%), ICICI Bank Ltd(2.2%)and ITC (1.4%) were top Sensex gainer.
Most Asian markets surrendered gains to end lower during a volatile session Monday as worries about the European debt crisis and global economic outlook kept investors on edge. Earlier in Asia, markets ended the day mostly in negative territory, as investors reacted to a steep sell-off of U.S. stocks Friday.
Japan's Nikkei 225 index lost 1%, South Korea's Kospi also took a hit, dropping 2%. Hong Kong stocks ended 0.5% higher after a rollercoaster session. However European stock markets rose in choppy trading Monday as investors starting buying beaten down shares of banks and oil producers. World markets are hoping that the Federal Reserve might take action to keep the U.S. from slipping back into recession offset fears of a global slowdown.
Gold keeps moving higher
Gold surged to a fresh all-time high of Rs 28,540 per 10 grams in the bullion market today on sustained buying by stockiest and investment-driven purchases fuelled by the bullish trend in international markets. Gold in global markets, which normally sets the price trend on the domestic front, shot up by $34.20 to $1,887.30 an ounce. A firming trend in the futures market, where gold jumped to a new record level, also fuelled the uptrend. Gold moved up aprox. 28% in last 7 weeks..
Crude oil slide
Brent crude dropped more than $3 on Monday to below $106 a barrel, while US oil fell more than a dollar to below $82, on the potential for a resumption of exports from OPEC-member Libya as a six-month civil war there appeared close to an end. A bleak global economic outlook has also dampened prices, analysts said.Libya pumped around 1.6 million barrels per day (bpd), nearly 2% of global supply, before the war cut output. Most of Libya's high-quality crude flowed to European refiners, and tightening supply after Libyan exports stopped drove Brent to a two-year high of $127.02 in April.
