Ending a four-day loosing streak, the 30-share Bombay Stock Exchange (BSE) sensitive index Sensex on Tuesday jumped 473 points, or 3%, to close at 16,524, mainly driven by optimism that European leaders will pull together a rescue plan for the debt-ridden euro zone.
Owing to the uncertainty in global economy, Sensex had lost 1,050 points in last four trading sessions.
“Recovery in global market helped Indian markets in the today’s rally,” said DD Sharma, vice-president, research, retail, Anand Rathi Financial Services. “Indian markets are near to their bottom and we may see more rallies in coming days if there is no negative news from western part of the world.”The National Stock Exchange index Nifty also ended higher at 4971, up 136 points, or 2.8 %.
The maximum gain so far this fiscal has been seen on August 29 when the Sensex rose by 568 points, while the second-highest surge of 513 points was registered on June 24.
“Retail investors should not be swayed by such rallies and should invest in phased manner with a long-term investment horizon,” said Alex Mathew, head of research, Geojit BNP Paribas Financial Services.