Smart surge in manufacturing activity to a six-month high in December 2011, according to the HSBC Markit India Manufacturing, steep fall in food inflation that indicated reversing the tight monetary stance adopted by the apex bank`s Governover D. Subbarao since March 2010 to tame inflation, mainly supported the market after the afternoon session.
Starting off the New Year on a liberalisation note, the government Sunday announced its decision to allow Qualified Foreign Investors (QFIs) to directly invest in the Indian equity market from January 15, 2012 to attract more foreign funds and reduce market volatility. The move comes against the backdrop of significant foreign capital outflows from the domestic equity market in recent times, which has resulted in rupee volatility.
Firm european markets too aided the sentiment in the later part of the day as most of the Asian markets were closed today only South Korea and Taiwan were opened and ended with steady to weak. The Bombay Stock Exchange 30-share barometer resumed better but fell back sharply to a low of 15,358.02, down by almost 186 points. But buying after the mid-session pulled it back to settle at 15,517.92, up by 63.00 points or 0.41 pct. In last straight four trading days, it had tumbled by 515.83 points or 3.23 per cent.