The Bombay Stock Exchange benchmark Sensex on Wednesday surged by 222 points to a 16-month high as overseas funds bought shares, especially in metal and auto sectors, bolstered by expectations of an early global economic recovery.
The 30-share index gained 222.59 points to close at 16,677.04 points, a level last seen on May 23, 2008. Brokers said fund-based buying picked up on reports that the global economic recession is almost over.
The US Federal Reserve Chairman, Ben .S. Bernanke, said the worst US recession since the 1930s has probably ended.
The wide-based National Stock Exchange index Nifty also crossed the crucial 4,900 points level gaining 66.30 points to close at 4,958.40 points.
Among the 30 Sensex stocks, 24 scrips closed with gains and six with losses.
The metal sector index gained the most by 4.20 per cent to 14,527.67 points, after Tata Steel rose by Rs. 40.35 to Rs. 531.60, its highest in a year.
Sterlite Industries, the biggest copper producer, rose by Rs. 27.55 to Rs. 771.05 after metal prices moved up in overseas markets as sales at US retailers jumped by the most in three years in August.
Infosys rose by 2.10 per cent to Rs. 2,317.65 and Reliance Industries by 0.15 per cent to Rs. 2,183.50.
