Taking a cue from firm global trend, the stock market extended gains for the second consecutive day on Wednesday with the benchmark Sensex rising by another 162 points on continued positive FII activity amid the government's move to make cement imports duty-free.
The market continued its recovery as foreign funds made heavy purchases in front line stocks at attractive price levels
after a huge 617-point plunge on April 2.
Despite a negative development for the cement sector, the Bombay Stock Exchange (BSE) Sensex opened strong at 12,691.24 and later touched the day's high of 12,835.36 before ending at 12,786.77, a net rise of 162.19 points or 1.28 per cent over yesterday's close of 12,624.58.
The broader S&P CNX Nifty of the National Stock Exchange (NSE) also shot up by 42.60 points or 1.15 per cent to close at 3,733.25 from previous close of 3,690.65.
The market sentiment was largely boosted by a firm trend in Asian markets and increased FII activity.
In Asian Markets, Japan's Nikkei jumped by 300 points, Hong Kong's Hang Seng 207 points, Singapore's Straight Times by 44.56 points and South Korea's Kospi by 19.66 points.
Yesterday, Dow Jones Industrial Average and the Nasdaq Composite Index too closed sharply higher.
Continued low volume, however, indicated that retailers participation has fallen substantially after Monday's mayhem.
Meanwhile, market players viewed government's decision to abolish all duties on import of portland cement as a negative factor for the cement industry.