Markets rose for the third day in a row today with the BSE benchmark index Sensex surging by nearly 200 points on renewed buying amid strong global cues.
The 30-share index of the Bombay Stock Exchange finished the day by 196.66 points, or 1.18 per cent, at 16,863.06 points -- the best closing since May 18.
Despite a highly volatile week, the Sensex recored a net gain of 2.53 per cent during the period on the back a strong recovery in the past three days. In the past three sessions, the barometer has gained over 5 per cent.
The wide-based 50-share Nifty index of the National Stock Exchange too climbed 1.27 per cent to end at 5,066.55 points.
"Though confidence in market has not returned fully, positive cues from across the globe helped hectic buying here.
Markets have retreated significantly in the immediate past and a pull-back is not so surprising," Sarabjit Kour Nangra, VP, Research, Angel Broking, said.
Index heavyweight Reliance Industries rose 1.17 per cent to Rs 1,033.85, after the company said it has made fifth oil discovery in a block in Gujarat.
Hectic buying was seen across all counters. All sectoral indices on BSE ended higher in the range of nearly 1 per cent and four per cent, with realty, metal, FMCG and auto leading the charge.
FMCF major ITC climbed 2.53 per cent and realty giant DLF advanced 3.53 per cent.
In the frontline metal stocks, Sterlite surged 5.75 per cent, Jindal Steel 4.85 per cent, Tata Steel 0.64 per cent and Hindalco 1.55 per cent.
The top gainer in the BSE-30 was Reliance Communications at around 6 per cent.
Analysts also said easing of food inflation for the latest week also helped market sentiment. Food inflation for the week ended may 15 stood at 16.23 per cent down from 16.49 per cent of May 8.
Maruti Suzuki and HDFC Bank were the top losers.
"Volatility in market will continue and money flows would be impacted in the Indian markets in the short term. But over a longer term, fund allocation to Indian markets will rise. So till then investors should adjust their investments in between equity and fixed income products," Axis AMC MD & CEO Rajiv Anand said.
On the global front, Japan's Nekkei added 1.28 per cent, while Hong Kong's Heng Seng Index rose 1.73 per cent. Europe was also firm in mid-session. There was a rally in US markets overnight.
