Sensex surges 2.2% more on positive cues
The BSE Sensex index today surged 363 points, third day of gains in a row, on steady inflow of foreign funds on hopes of a solution to euro zone debt crisis.business Updated: Dec 02, 2011 23:30 IST
It was Europe again cheering investors. The Bombay Stock Exchange's 30-share Sensex on Friday surged 363 points, or 2.2%, following more positive news coming from the crisis-hit euro zone and on hopes that the Reserve Bank of India will not increase interest rates further. The National Stock Exchange's benchmark Nifty also rallied 113 points, or 2.3%, to end at 5,050, crossing the 5,000 threshold.
Analysts say the mood in the capital market was positive, despite the concerns about slowing down of growth rate that touched 6.9%.
The news of six major central banks offering loans to European banks at lower interest rates and China's decision to slash its reserve requirement ratio for the first time since 2008 also boosted market sentiments, with pessmistic traders buying positive positions to lower their risk.
"Short covering and fresh buying was witnessed in the markets," said Shrikant Chouhan, head of technical research, Kotak Securities.
Power and bank stocks jumped the most by 3.0% and 3.3%, respectively.