The benchmark Sensex on Tuesday rose 143 points, 0.7%, to 20,302, the highest level in 30 months as markets cheered the Reserve Bank of India’s (RBI’s) fresh curbs on gold imports and a drop in US home sales suggested the Fed would continue with its stimulus programme.
Gains also tracked global shares that rose towards five-year highs on Tuesday helped by China’s plans for avoiding a hard landing in its slowing economy.
Investor wealth, measured by market capitalisation of traded companies on the BSE, rose R40,000 crore to R66 lakh crore.
The NSE Nifty also rose 46 points, or 0.8%, to end at an almost two-month high of 6,078.
“Moves by the government to stabilise a sliding rupee have helped in boosting confidence in the markets,” said Dipen Shah, senior vice-president, private client research, Kotak Securities.
Consumer goods shares, led by ITC and Hindustan Unilever (HUL), also rallied to record highs with investors shifting to defensive stocks in an uncertain economic environment.
Both companies, which touched fresh 52-week highs, contributed to half of the index's gains.
All sectoral indices ended higher, gaining around 3.85%.
Going forward, global cues and earnings numbers from index majors like Maruti, ITC, ACC, HUL and Wipro are expected to decide the course of the markets, said experts.