E-Paper
Sensex leaps 576 points on reforms push, global cues
The stock markets on Wednesday surged on the back of positive global cues with the sensex on the Bombay Stock Exchange trading 325 points up in early trade. The National Stock Exchange’s Nifty index was also rallying up by 108 points after Asian shares, which open before the Indian markets, jumped on reports that the US economy is looking up.
Markets staged a strong rally on an across-the-board buying frenzy, lifting Sensex 576 points to a nearly 3-month high of 25,881.17 and the Nifty 186 points above 7,900 at the close, amid strong reform measures by the Centre and robust global cues.
Besides, encouraging quarterly results and expectations of a good monsoon this year also made investors bolder.
The Union Cabinet today approved the first-ever policy for the country’s capital goods sector envisaging creation of over 21 million new jobs by 2025.
The Sensex opened strong at 25,432.10 and continued to rise to hit the day’s high of 25,897.87. Finally, it settled at one-month high of 25,881.17, a gain of 575.70 points or 2.28% -- its biggest single-day gain since March 1.
The 50-share NSE Nifty recaptured the 7,900-mark to hit a high of 7,941.20 before winding up at 7,934.90, a hefty rise of 186.05 points or 2.40%.
Financials led the powerful rally followed by capital goods, technology, power, energy, realty and auto.
Covering-up of pending short positions by traders ahead of the F&O expiry in the derivatives segment on Thursday predominantly supported the upside even better-than-expected Q4 earnings result, too, weighed on trade.
Elsewhere in the region, barring China, most Asian markets closed on a firm note following strong Wall Street close overnight.
Hongkong led the rally, surging 2.71%, followed by Japan 1.57%, South Korea 1.18%, Taiwan 1.15% and Singapore 0.60%.
European bourses are trading firmly higher with DAX up 1.30%, CAC 1.02% and FTSE 0.65%.
