Sensex rises 311 points, Nifty breaches 4,000 mark

Investor confidence returns on healthy early corporate results

The market surged to its highest close in nearly two months as investors bought blue-chip stocks in anticipation of strong earnings numbers and bullish sentiment in global markets.

The bellwether Bombay Stock Exchange (BSE) Sensex rose by 311 points (2.33 per cent) to 13,695.58 points "" the highest close since February 23.

The broader S&P CNX Nifty breached the crucial 4,000-mark for the first time since February 22, closing 96 points (2.45 per cent) up at 4,013.35.

The Sensex is now 1,028 points short of its all-time high of 14,723.88 points.

With Monday's gain, the Sensex has gained 1,240 points or nearly 10 per cent in nine consecutive sessions since the fall of April 2, which resulted from an increase in the cash reserve ratio by the Reserve Bank of India on March 30 (the cash reserve ratio is the amount of cash banks must compulsorily keep with the central bank).

The index plunged 616.73 points, its biggest single day fall since May 18 last year, on that day. The NSE-50 Index has gained 379.75 points or 10.45 per cent since April 2.

Investor wealth has risen by Rs 3,21,557 crore in the last nine sessions "" a gain of Rs 35,728 crore per day. "Q4 results, till now, have been very healthy. Investor confidence in the markets seems to be coming back," said an analyst.