Volatility may rise ahead of the expiry of the August 2009

Key benchmark indices extended gains for third day buoyed by strong global cues. The BSE 30-share Sensex gained 387.92 points or 2.55%, with shares from realty, metal and capital goods shares in forefront. Stocks across the globe surged with European and Asian stocks advancing to a 10-month high today, 24 August 2009. The US indices rallied on Friday, 21 August 2009 with the S&P 500 and the Nasdaq striking 10-month highs in intraday trade, while the Dow industrials hit its highest level in nine months.

The market breadth was strong on BSE with small and mid-cap stocks also participating in the rally. Today's advance was broad based with all BSE sectoral indices edging higher. Volatility may rise ahead of the expiry of the August 2009 series on Thursday, 28 August 2009.

European markets hit highest level since mid-October 2008 today, 24 August 2009 buoyed by renewed hopes that the global economic recovery is gathering pace. Key benchmark indices in UK, Germany and France were up by between 0.55% and 0.69%