Investors' wealth today soared by Rs 1.27 lakh crore on all-round buying as stocks rallied after investors cheered the government's resolve to push ahead with big-bang reforms.
Investors backing of the reform measures mainly FDI in retail saw the Sensex surging by 517 points to a new 14-month high as Samajwadi Party reassured the government of its support on a day Trinamool Congress pulled out of the UPA coalition.
After climbing to 18,866.87, a new high in 14 months during the day, the Sensex finally closed at a 52-week high of 18752.83 points, up 403.58 points or 2.20%.
Today's rise was the second biggest single-day gain by Sensex after September 14 this month. Across broader market, over 1,800 stocks closed with gains.
In the process, the total investor wealth moved up by Rs 1.27 lakh crore to Rs 65 lakh crore.
The NSE 50-share Nifty index shot up by 136.90, or 2.46% to 5,691.15.
Analysts said political strength and stability and assurance of further more reforms steps to be taken in future boosted market sentiment.
"As the dark clouds over the sustainability of the current government cleared (with the support of Samajwadi party), the market sentiment improved.
"While on the one side, the government is pushing reforms aggressively, on the other side, the move by the government is infusing confidence in the economy," Nagji K Rita Chairman & MD Inventure Growth & Securities said.
FIIs continue to pump in liquidity in the market by maintaining their optimism in the Indian stock market is also a big positive for the domestic equity market, experts said.
The approval to Rajiv Gandhi Equity Savings Scheme (RGESS) to encourage first-time retail investors to invest in stocks also lifted the sentiment, they said.
