Sensex ups 438 points to 25,339, Nifty surges 138.20 points to 7,735
Brokers said fresh spell of buying by investors and foreign funds, triggered by a firming trend in global markets, after the US Federal Reserve Chair Janet Yellen signalled that a rate hike was not likely to come before June, helped the key indices to regain their crucial levels.business Updated: Mar 30, 2016 20:02 IST
Driven by a sharp rally in broader markets where the BSE Sensex soared by 438 points, investors became richer by Rs 1.62 lakh crore after the US Fed chair Janet Yellen signalled gradual approach to raising interest rate, which also pushed the rupee to a three-month high.
Ending two-session losing run, the market benchmark Sensex zoomed 438 points to 25,338.58 - its biggest single-day gain since March 2 - while NSE Nifty reclaimed the 7,700-mark by gaining 138.20 points.
This helped the total investor wealth of BSE-listed firms swell by Rs 1,62,392.75 crore to Rs 94,51,833 crore.
Global markets cheered Yellen’s comments that the US central bank needed to proceed cautiously on raising interest rates in midst of global risk factor.
Moreover, covering-up of short positions before tomorrow’s expiry of March series in derivatives segment and hopes of a rate cut by Reserve Bank at the monetary policy review on Tuesday, accelerated buying further.
The rupee rose for a fourth straight day and gained 17 paise to close at a three-month high of 66.37 against dollar on sustained selling of the greenback by banks and exporters.
The BSE Sensex after a gap-up opening continued strides as buying activity gathered momentum and closed at 25,338.58, a jump of 438.12 points or 1.76%. The gauge had lost over 437 points in the past two sessions.
The 50-share Nifty on the National Stock Exchange too closed above the psychological 7,700-level by surging 138.20 points or 1.82% to 7,735.20.
Tata Steel emerged as the best performer and closed 6.75% up at Rs 324.40 after the government extended the safeguard duty on some steel imports by two years till March 2018, to protect domestic industry.
Buying spree was so strong that all the sectoral indices led by realty, banking and metals ended in the positive zone, rising by up to 3.85%. Small-cap and mid-cap shares also gained as retail investors widened their positions, lifting the indices by 1.87% and 1.81%.
On domestic bullion market front, jewellers in large number continued their strike for a 29th day, demanding a complete roll back of budgetary proposal of 1% excise duty on non-silver jewellery.
Globally, gold prices fell 0.83% to $1,231.60 an ounce in New York as share markets surged and investors were sellers of the metal.