The sentiment in the market is on a revival mode as the 30 stock benchmark index at the Bombay Stock Exchange- Sensex staged a smart recovery of 5.6 per cent or 550 points and closed above the psychological mark of ten thousand at 10,337. It followed the rate cut measures brought into effect by the Reserve bank of India on Saturday.
The movement in the Sensex was driven primarily by the recovery in the realty index and the banking index at the BSE, which gained 8.3 and 7.5 per cent respectively.
“The sentiments are reviving,” said Divyesh Shah, chief executive officer, Indiabulls Securities. “The mouth watering valuations with the huge fall in October coupled with the cuts in the CRR, repo rate and SLR have brought the investors back into the market.”
Reliance Infrastructure emerged as the top gainer in the Sensex list of companies and gained 17.2 per cent. DLF gained 14.9 per cent and Jaiprakash Associates gained 13.4 per cent.
SBI emerged as the major gainer in the sensex and closed with a gain of 11.8 per cent. Yes Bank was the top gainer in the banking index and was up 14.4 per cent.
The stability in the global markets has also led to the revival in sentiment. The foreign institutional investors emerged as net buyers at both BSE and NSE with a net equity purchase of Rs 363.5 crore. Earlier, in the month of October, Sensex lost around 35 per cent and touched a 35-month low of 8,509 but some recovery towards the end of October saw the monthly loss at 25 per cent.