Buoyed by amendment of regulations on Foreign Institutional Investors (FIIs), key indices on the bourses on Wednesday surged by two per cent, extending their gains to a second day in a row.
The Bombay Stock Exchange (BSE) 30-share sensitive index (Sensex) opened strong at 11,723.78 and gradually moved higher to the intra-day high of 11,938.41 before ending the day at 11,893.79 from Tuesday's close of 11,660.79, a net rise of 233.00 points or 2.00 per cent.
Similarly, the National Stock Exchange's (NSE), S&P CNX Nifty soared by 64.65 points or 1.91 per cent to 3,454.55 from previous close of 3,389.90.
The Sensex has almost recovered its Monday's losses in the last two sessions.
The market sentiment was also aided by firm Asian advices and a remarkable industrial growth in July.
The Securities and Exchange Board of India (SEBI) has amended the regulations on FIIs to give FII status to overseas-registered or incorporated pension funds, mutual funds, investment trusts, insurance companies, reinsurance companies, international or multilateral agencies, foreign governmental agency or a foreign central bank.
FIIs, which have been heavy sellers in the derivatives segment since September 5, were engaged in shortcovering of positions. FIIs had reported withdrawals of Rs 2,854 crore from the Futures and Options (F&O) in the last six sessions.
Commenting on the amendment, brokers said this is a positive development for the market, which is expected to get a boost in next few days. MORE
Of the total 2,579 traded shares, 1,649 scrips recorded sharp gains while 822 others closed with losses. 250 counters were stuck in upper circuit filter at close and 86 others touched lower price band.
The trading volume was remarkably higher at Rs 3,999.46 crore from Rs 3,401.29 crore yesterday. IDFC topped the list of highest traded securities with a turnover of Rs 284.82 crore followed by RIL (Rs 211.65 crore), India Bulls (Rs 177.55 crore), Reliance Capital (Rs 136.77 crore) and ICICI Bank (Rs 130.10 crore).
The broad-based BSE-100 Index spurted sharply by 119.48 points to 6,060.86 from previous close of 5,941,38.
The BSE-200 Index and the Dollex-200 were quoted sharply up at 1,431.82 and 515.81 at close compared to previous close of 1,404.48 and 505.41 respectively. The BSE-500 Index shot up by 86.22 points to 4,540.57 from last close of 4,454.35 and the Dollex-30 ended higher at 2,112.90 from 2,069.27.
SBI flared up by 37.40 to 969.40, ICICI Bank by 25.95 to 63.85, HDFC Bank by 33.05 to 873.80, Infosys Tech by 40.00 to 1810.00, Satyam Computer by 18.95 to 802.75, TCS by 18.85 to 997.40, Wipro by 8.00 to 511.70, Maruti by 33.75 to 955.95, Tata Motors by 16.05 to 869.85, Hero Honda by 7.40 to 778.65, Bajaj Auto by 68.40 to 2777.40, Bharti Air by 19.75 to 443.05, BHEL by 34.60 to 2264.30, Cipla by 2.75 to 252.40, Dr Reddy by 25.55 to 737.30, Grasim by 21.40 to 2327.15, HDFC by 21.25 to 1352.30, HLL by 6.55 to 235.65, L&T by 66.50 to 2521.60, NTPC by 5.45 to 129.40, ONGC by 7.90 to 1158, REL by 10.40 to 470.50 and Ranbaxy by 7.15 to 412.30.