The Bombay Stock Exchange benchmark index Sensex today surged 230 points and regained the psychologically sensitive 16,000-level on all-round buying by funds and investors amid firming global sentiment.
Following strong Asian markets, the Sensex surged 174 points in opening trade and continued to rally throughout the day and touched a high of 16,202.87 before ending the day 230.42 points higher at 16.152.59.
The rally was led by a surge in refinery stocks and expectations of positive IIP data to be released later today, triggering all round buying by funds. These factors even shrugged off a higher food inflation which touched almost 18 per cent for the week ended January 30.
A moderate improvement in the January exports data also helped the sentiment, said marketmen. January exports grew 11.5 per cent to touch 14.34 billion dollar, recording a third consecutive month of growth.
Marketmen also said funds picked up fundamentally strong stocks ahead of a long weekend. The market will be closed on Friday for Mahashivratri.
The wide-based NSE Nifty too by shot up by 69.65 points to 4,826.85. After opening 53 points up, the index touched the day’s high of 4,843.80 on heavy buying on Asian cues and higher European opening.
The oil and gas sector gained the most rising 2.25 per cent as the segment major and Sensex heaviest Reliance shot up by Rs 32.85 to Rs 1,017.50, followed by ONGC that rose by Rs 12.25 to Rs 1,100.
Infosys, the second largest Sensex counter, also helped the market surge by shooting up Rs 23.30 to Rs 2,495. Other major gainers were Maruti Suzuki by Rs 25.35 to Rs 1,360 and Tata Motors by Rs 20.25 to Rs 690.10 and M&M by Rs 31 to Rs 987 at close.
The Cabinet decision to double the FDI approval level by the Foreign Investment Promotion Board by up to Rs 1,200 crore against the existing limit of Rs 600 crore, was an additional sentiment booster.
The after being battered yesterday, the infrastructure and realty counters rose on expectations of a rise in demand.
Cement counters led by ACC, Grasim and Ambuja Cements and metals majors like Tata Steel, Sterlite and Hindalco were also star performers.
The auto sector index was the second best performer by adding 2.08 per cent to 6,958.91 points followed by realty sector index by 2.05 per cent to 3,386.77.
The metal index rose by 1.62 per cent to 15,639.74 as Tata Steel rose by Rs 11.45 to Rs 534, reducing its loss of 14 per cent so far this year, after its Corus unit said it plans to raise European prices for hot and cold rolled, hot dipped galvanized and organic coated strip products.
Among the 30 Sensex stocks, 28 gained while Tata Power and Bharti Airtel declined.