Sensex surges 388 points to regain 20,000 level.
The domestic equity markets closed on a strong note today on the back of buying in almost all counters and the resounding response to Coal India’s issue on the last day of bidding.
Further, firm opening in the European markets helped the domestic indices accelerate in the later part of the day. The Bombay Stock Exchange Sensitive Index, or Sensex, jumped 388.43 points, or 1.95 per cent, to close at 20,260.58.
The rally was led by Hindalco Industries, up 5.05 per cent, followed by Bharti Airtel (5.03 per cent) and Hindustan Unilever (3.95 per cent). Of the 30 Sensex stocks, only NTPC fell 0.12 per cent.
The National Stock Exchange’s benchmark index, CNX Nifty, was up 118.4 points, or two per cent, at 6,101.50. Of the 50 scrips in the index, only five closed in the red.
Ambareesh Baliga, vice-president, Karvy Stock Broking, said, “The rush for the Coal India issue was, undoubtedly, one of the key factors that stoked positive sentiment today. Firm opening of the European markets and short-covering further helped the domestic markets.”
Brokers said high subscription of the country’s largest-ever issue was a signal that funds would keep coming in, as against recent concerns that the inflows would lose momentum.
Among sectoral indices, fast moving consumer goods registered the highest gain (3.2 per cent), followed by the banking index (2.1 per cent). Oil & gas, metals and realty were among the other top sectoral performers on Thursday. Automobile and information technology sectors clocked marginal gains of less than one per cent.
Piyush Garg, chief investment officer, ICICI Securities, said, “There was no major negative global news today. The last three-four sessions saw other markets close on a strong note. Since our markets had already seen a slight correction, there were expectations of some pullback rally.”
Reliance Industries rose 2.9 per cent to Rs 1,079.25, while State Bank of India surged 3.3 per cent. In the pharma space, Cipla surged 3.6 per cent, while Reliance Communications firmed 2.5 per cent.
