Mumbai: The equity markets soared higher tracking strong gains in overseas equities after the Bank of England reduced interest rate to its lowest level in its 322-year history and also announced fresh quantitative easing programme to cushion the impact of Britain’s exit from the European Union.
The markets opened the day on a robust note and maintained its winning momentum throughout the trading session led by interest rate sensitive auto and banking sector stocks. The Sensex vaulted 363.98 points or 1.31 per cent to end the day at 28,078.35 while the Nifty ended the day at 8,683.15, gaining 132.05 points or 1.54 per cent.
According to the provisional data released by the stock exchanges, foreign portfolio investors (FPI) purchased shares worth Rs 435.63 crore.
“The case for an upgrade in market valuations, post the passage of the GST continued to buoy the market. The Indian Meteorological Department (IMD) has retained their positive outlook of above average monsoon and the government’s plan to maintain the long-term inflation target at 4 per cent did provide a flip to the market.
The global market were also buoyant led by Bank of England (BOEs) stimulus measures and optimism ahead of the release of US employment data,” said Vinod Nair, head of research at Geojit BNP Paribas. Hero Motocorp and Bajaj Auto were the top gainers among the Sensex constituents.
