Monday, November 10, 2008

==>> China unveils USD 586 bn package

The Sensex rose 571.87 points or 5.74%, to close at 10,536.16, after hitting an intraday high of 10,570.58. The 50-share Nifty Fifty gained 175.25 points or 5.89%, to settle at 3148.25. It has hit a high of 3161.25.
It was a spectacular session for the markets. Positive global cues led by announcement of China's USD 586 billion economic stimulus package, helped benchmark indices to remain strong. However, volumes have been quite tepid at around Rs 44,000 crore. Metal sector was the leader in today's rally followed by power, capital goods, telecom, oil & gas and technology sectors. Midcap and small cap stocks were also in the limelight.
China will unveil a USD 586 billion economic stimulus package by 2010 that will be spent on upgrading its infrastructure, on land reforms and social welfare projects. The package is nearly 15% of China's GDP versus that of 1.2% during the Asian Crisis in 1998. China's GDP growth slowed to 9% in Q3CY08 versus 10.4% in H1CY08 and the Shanghai Composite Index had hit a 26-month closing low of 1,706.7 last week.
Major Asian markets posted strong rally. Shanghai closed higher by 7.27% and Nikkei jumped 5.81%. Hang Seng rose 3.52%. Straits Times and Kospi were up 1-1.6%. Jakarta and Taiwan ended flat.

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