Mumbai: The BSE benchmark Sensex has surged by 390 points to close at one-week high of 26,637.28 on across-the-board buying, tracking a rally in world markets after the US Fed Reserve signalled that a rate hike not be immediate to support global recovery.Similarly, the 50-share NSE Nifty regained 7,900 level by rising 117.85 points or 1.5 per cent to its highest level in four days to 7,960.55.
The 30-share Sensex resumed in positive zone and gathered momentum to touch session's high of 26,688.70, before settling at 26,637.28, a rise of 390.49 points, or 1.49 per cent. This is also its best single day gain since it had zoomed 480.92 points, or 1.81 per cent on September 18 and one-week closing high since 26,744.69 on September 24. The gauge had lost over 383 points in the past three sessions. "The rally was fired by the dovish Fed minutes which suggested that rate hike will not be sooner. Global markets rallied and European markets also opened in green and showed strong momentum thus providing strength to Indian markets," said Kiran Kumar Kavikondala, Director & CEO, WealthRays Securities. Brokers also said a recovery in rupee also bolstered the sentiment.
"Strength in equity markets after recent correction and outflows also provided strength to Rupee. RBI announced a OMO of Rs 10,000 crore to suck liquidity from market," they added. Of the 30-Sensex shares, 25 ended higher led by BHEL (8.37 per cent), Hindalco (6.01 per cent) and SBI (2.84 per cent), while five shares ended lower led by Wipro (down 0.83 per cent) and . Among the BSE sectoral indices, capital goods rose by 3.01 per cent followed by realty 2.61 per cent .
"It (the rally) was mainly on the back of Fed's soft statement that has triggered recovery in almost all the world markets," said Shrikant Chouhan, Head- Technical Research,Kotak Securities. Asianm including key benchmark indices in Singapore, Taiwan, Hong Kong, Japan and China rose by 0.28 per cent to 1.17 per cent, while Japan's Nikkei eased by 0.75 per cent.
