Mumbai, May 4 (Inditop) In what was the biggest gain in a single day since Oct 31, 2008, a key index of the Indian equities markets soared more than 700 points, raising hopes that the rally that has kept the bourses in green for eight-nine weeks can be sustained.
The 30-scrip sensitive index (Sensex) of the Bombay Stock Exchange (BSE), which opened at 11,635.24 points, rose 731.5 points or 6.41 percent from its previous close to end trade at 12,134.75 points.
The Sensex touched an intra-day high of 12,161.9 points and a low of 11,635.24 points.
Similarly, the S&P CNX Nifty of the National Stock Exchange (NSE) gained 4.96 percent to close at 3,646.35 points.
Broader market indices also gained, with the BSE midcap index moving up 3.91 percent, while the BSE smallcap index was up 3.57 percent.
“It’s certainly a break-out as we have seen more than a 50 percent rise from the March 9 levels of 8,000 to more than 12,000 now. This has happened in about 40 trading sessions or less,” said Jagannadham Thunuguntla, equity head at SMC Capitals.
All the 13 sectoral indices on the BSE were in the positive terrain, with the indices for metal, IT and banking stocks gaining the most.
There were no losers on the 30-scrip Sensex.
Among top gainers were Sterlite, up 16.56 percent at Rs.467.80; Hindalco, up 13.74 percent at Rs.61.25; Mahindra and Mahindra, up 13.07 percent at Rs.549.80; and HDFC, up 13.06 percent at Rs.1,957.60.
Market breadth was positive, with 1,771 scrips advancing, 770 stocks declining and 71 remaining unchanged.
“A lot of people, institutions who were sitting on the sidelines have come into the market now leading to this surge. They don’t want to miss out on the rally because one can’t match the returns that capital markets give over other avenues,” Thunuguntla added.
Companies that were most traded in rupee terms included Reliance Industries, ICICI Bank and Educomp Solutions.
In Asian markets, while a key Japanese index – the Nikkei of the Tokyo Stock Exchange – closed Monday with modest gains of 149.11 points to close at 8,977.37 points, the Hang Seng, a key index of the Hong Kong Stock Exchange, ended trade high up in the green at 16,381.05 points, 860.06 points or 5.54 percent above its previous close.
European markets were trading mixed with the FTSE in Britain trading marginally lower, 0.45 points down at 4,243.22 points, and its French peer CAC 40 ruling 33.33 points up at 3,196.13 points.
Data with the market watchdog, Securities and Exchange Board of India (SEBI), showed that foreign funds were net buyers Monday lapping up scrips worth $68.3 million.
