Sensex surges 376 points, Nifty regains 7,900 mark
The stock markets extended Monday’s rally and gained a further 200 points on Wednesday, boosted by the Reserve Bank of India’s surprise 50 basis points cut in repo rate, which was followed by several banks announcing a cut in their base rates.business Updated: Sep 30, 2015 17:43 IST
The benchmark BSE Sensex on Wednesday jumped over 376 points -- its biggest single-day gain in three weeks -- to recapture the 26,000-level on continued buying in blue-chips amid rebound in global markets.
Market was in a positive mood following Tuesday’s rally after Reserve Bank governor Raghuram Rajan sprang a surprise by announcing a bigger-than-expected rate cut of 0.50% to 6.75%, lowest in four-and-half-years to boost economic growth.
The 30-share Sensex stayed in the green throughout the session and touched a high of 26,179.70 before ending at 26,154.83, showing a rise of 376.17 points or 1.46% --its biggest single-day gain since September 9.
The index has gathered 538 points in the last two days. The NSE Nifty index regained the 7,900-mark by soaring 105.60 points or 1.35% to close at 7,948.90.
Besides rate cut, a rebound in Asian and European markets, as investors snapped up bargain shares, after recent heavy falls that were sparked by global growth worries, too buoyed trading sentiments.
Rupee strengthening against the dollar during the day also helped. Metal stocks were at the center of brisk activity on value-buying after recent sell-off and overnight gains in global commodities prices.
The BSE metal index gained the most by rising 3.36% with stocks of Tata Steel and Hindalco emerging major winners by rising up to 5.24%.
Of 30 Sensex constituents, 24 shares ended with gains including Bharti Airtel, BHEL, GAIl, Coal India, HUL, Infosys, Tata Motors, Hero MotoCorp, ITC, RIL, Bajaj Auto and NTPC.
Banking stocks -- SBI and Axis Bank -- which made notable gains on Tuesday, lost some ground on Monday.
Among other sectoral indices, FMCG rose 2.36%, followed by infra 2.17%, teck 2.07%, realty 2.05%, power 1.88% and oil&gas 1.86%.
Broader markets too remained in better shape as the BSE mid-cap rose 1.71% and small-cap gained 1.07%.
Globally, Asian markets closed in positive terrain and European shares were in better form in their early deals.