The Sensex of the Bombay Stock Exchange surged by 350 points, or 2.2%, to close at a one-month high of 16,166 points on buying support triggered by upgrading of Indian foreign currency rating by Moody's and anticipation of likely rate cuts by the Reserve Bank of India.
“The major trigger for the day was the rating upgrade of India’s short term foreign currency by Moody’s Investors Service,” said Alex Mathews, head, technical and derivatives research, Geojit Financial Services. “Investors are also expecting that the RBI may cut rates going ahead.”
The Nifty of the National Stock Exchange also rose up by 107 points, or 2.3% to a one-month high of 4,850.
The Sensex rally was led Reliance Industries (4.0%) and ICICI Bank (3.9%).
All 13 sectoral indices closed in the black, with realty index being the top gainer (up 4.2%).