Markets on Monday soared by over 380 points to regain the 17,000-level after the investor sentiment was bolstered by robust industrial production in August and hopes of a truce between warring Ambani brothers.
Markets witnessed frantic rally soon after the news of 10.4 per cent growth in industrial output, the highest in 22 months, came out. Brokers said atmosphere was euphoric with a slew of goods news adding to the festive cheer.
The Bombay Stock Exchange benchmark index, Sensex, opened on a strong note after Anil Ambani yesterday extended an olive branch for peace with elder Mukesh Ambani, fuelling investor hopes of an end to one of the most intense corporate battles.
The market also got support from Prime Minister Manmohan Singh’s statement that the economic growth will accelerate.
Brokers said investors, fortunes of many of them are tied up with frims run by Ambani brothers, cheered the development.
Brokers said while the latest in Ambani episode gave the push, what propelled the market to 17,000-level were 10.4 per cent industrial growth which had beaten expectations.
“Backed by good IIP figures, positive news on Reliance front drove the market. Among the top 20 gaines in F&O segment in Nifty, four were from Reliance pack -- Reliance Infra, RNRL, RelCap and Adlabs. It is not easy to say that Ambani dispute will soon be over but at least some steps are taken towrdas it and that gave a positive boost to the markets, said SMC Global Vice-president Rajesh Jain.
The 30-share index finally settled the day at higher by an impressive 384.01 points or 2.31 per cent at 17,026.67.