An upsurge in Asian stocks helped the markets brush aside concerns of cyclone Phyan hitting Mumbai and stage an impressive rally of over 400 points on all-round hectic institutional buying.
Metal and IT stocks were picks of the day. Market leader Reliance Industries gaining for the second day in succession further buoyed the sentiment. RIL closed higher by 2.70 per cent. Software exporters Infosys and TCS spurted by 3.24 per cent and 2.61 per cent respectively in anticipation of swift recovery in global economy.
Shrugging off the hesitancy at the outset, the Bombay Stock Exchange 30-share Sensex closed the day at nearly three-week high of 16,849.60, netting a rise of 409.04 points or 2.49 per cent over its previous close.
However, marketmen said this is no reason for saying cheers. “It is all money game on the streets at present. The market is not moving as per fundamentals. The kind of volatility we are seeing for the past four-five days are not desirable for the healthy development of market... at any point, 400-500 points intra-day fluctuation is not good,” said Sahara MF Chief Executive Naresh Garg.
Brokers said the rally is also linked to a sharp fall in dollar value, which fell to nearly a 15-month low, leading to a surge in world stocks during the day. Taking cue from softening of dollar, metal stocks in local bourses surged. The sectoral index posted a gain of 4.27 per cent.
