The Bombay Stock Exchange benchmark Sensex today spurted by 388 points to regain the crucial 20,000 level on buying in banking and FMCG stocks on hopes of strong earnings amid firming global trend.
The 30-share index bounced back to close 388.43 points higher at 20,260.58 points, as trend-setter Reliance Industries, State Bank of India and Tata Consultancy Services recorded significant ground. The barometer had lost 297 points in the last two trading sessions.
The wide-based National Stock Exchange index Nifty shot up by 119.40 points to 6,101.50 points.
Brokers said buying activity picked up on easing food inflation and steep rise in Tata Consultancy Services, the country’s largest software developer, ahead of its quarterly results.
Food inflation declined to 15.53 per cent for the week-ended October 9, from 16.37 per cent in the previous week.
Expectations of rise in revenue of FMCG companies amid the festival season further fuelled the market sentiment.
Firming trend in the Asian region and higher opening in Europe was additional factor for the current upsurge.
The heaviest in the Sensex, Reliance Industries shot up by Rs. 30.55 to Rs. 1,079.25 and software exporting major and second heaviest Infosys by Rs. 13.90 to Rs. 3,033.15. Tata Consultancy rose by Rs. 19.55 to Rs. 983.85. The three carry nearly 28 per cent weightage on the Sensex.
Among the lenders, State Bank of India rose by Rs. 101.95 to Rs. 3,196.40.
Barring NTPC, all the 30-BSE index components remained in better form on all-round buying. Smallcap and midcap stocks also joined the rally and ended higher.
The FMCG sector index gained the most rising 3.19 per cent to 3,679.99. Nestle India, Hind Unilever and ITC Ltd were on the fore-front.
The banking sector was second best performer by rising 2.09 per cent to 14,151.96 followed by oil and gas index by 2.03 per cent to 10,973.48.