The BSE Sensex closed at a nearly one-week high as funds resumed buying.
The BSE benchmark Sensex on Thursday rose by a massive 323.83 points to close at nearly one-week high led by gains in energy sector bluechips ONGC and RIL stocks, as funds resumed buying after Rupee recovered sharply on lower-than-expected current account deficit numbers.
The 30-share index commenced the day’s trade on a firm note at 18,753,48 and rose further by 323.83 points, or 1.75 per cent to close at 18,875.95. This is its highest closing level since 18,774.24 on June 21, 2013.
Similarly, the wide-based National Stock Exchange index Nifty gained 93.65 points, or 1.68 per cent, to close at 5,682.35. The SX40 index, the flagship index of MCX-SX, closed 170.48 points, or 1.54 per cent higher at 11,219.19.
Brokers said the current-account deficit (CAD), which is the difference between the outflow and inflow of foreign currency, moderated “sharply” to 3.6 per cent of GDP in the last quarter of 2012-13 fiscal, bolstered the trading sentiment.
This also led to the Rupee bouncing back from its record lows of 60.72 against the dollar to 60.24 intra-day.
Buying activity further gathered momentum as investors indulged in covering up their pending short positions on current month settlement in the derivatives segment, and a firming global trend, they added.
A firming trend in the Asian region and higher opening in Europe as slower-than-estimated U.S. economic growth stoked speculation the Federal Reserve may hold back from reducing stimulus, further supported the uptrend.
Out of the 30 BSE index components, 20 stocks closed with gains led by ONGC gaining 4.14 per cent to Rs. 320.55.
Reliance Industries surged by 3.48 per cent to Rs. 830.45 and Infosys by 3.31 per cent to Rs. 2,476.95. These two carry the most weight in Sensex.
Sectorally, the oil and gas sector index gained the most by 3.22 per cent to 8,610.65, followed by IT index rising 3.15 per cent to 6,208.70.