Markets today notched up over 500-point gain, the biggest in more than five months, to snap six days of straight losses, helped by the government’s assertion that stimulus packages would continue and there would not be any curbs on capital inflow.
The benchmark Sensex shot up by more than 200 points in the opening trade and avoided any major fall during the day before ending the day at 15,912.13, an impressive gain of 507.19 points or 3.29 per cent over its previous close.
The last time Sensex had gained over 500 points was on May 27 this year when it closed higher 520.41 points.
The all-around buying support came as a big solace to the markets after yesterday’s fall of close to 500 points, in tune with global trends, on concerns that governments worldwide may begin exiting from stimulus packages given last year in the wake of deepening of financial downturn.
The market had fallen by steep 1,406 points or 8.36 per cent in the past six days.
What sparked across-the-board buying was Finance Minister Pranab Mukhejee ruling out withdrawal of fiscal stimulus packages till economy recovers fully. His remarks that there are no plans to place curbs on the capital inflows into the country further augmented enthusiastic buying.
Marketmen said strong global cues and a weakening dollar against a basket of currencies also enlivened the sentiment.
India’s largest private sector firm Reliance Industries rebounded by 5.49 per cent. The spurt in RIL followed its hammering yesterday which saw shares plunging 5.73 per cent.