BSE Sensex zoomed over 440 points to close at an over 13-month high of 28,343.01, while the broader Nifty went past the psychological 8,700-level to finish at 16-month high of 8,744.35, lifted by positive global cues.
Overnight gains on the U.S. bourses with investors tapering the soon rate hike outlook triggered a rally in broader Asian and European markets, helping in reviving the domestic sentiment as well after a brief phase of sluggishness.
Besides, a sustained FII buying, a slew of positive corporate results as well as the RBI’s bullish annual growth report also added to positive cues.
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Vinod Nair, Head of Research, Geojit BNP Paribas Financial Services, said, “Market regained its strength as FIIs continue to pour into the domestic market despite a likely hike in FED rate. FII inflow has improved post a muted trend seen last week awaiting the FED chair’s speech last Friday. Global markets continue to be positive as investors have largely factored an interest rate hike in 2016.”
A firm trading momentum witnessed as retail investors and funds piled up positions in key frontline shares across the sectors led by auto, IT, capital goods, banks, financials, metals, consumer durables, oil&gas, power, realty, teck infrastructure, healthcare, PSUs, energy, utilities and basic materials.
The second-line midcap and smallcap companies also witnessed heavy buying; however, the telecom sector saw selling.
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Reserve Bank reported a near-term growth outlook for India seems brighter than last fiscal and the economy is likely to expand at 7.6 per cent this year, primarily due to better monsoon, as well as better money in the hands of government employees owing to the 7th Pay Commission implementation, while it underlined bearish global growth.
The 30-share Sensex resumed at 28,012.46 and moved between a high of 28,478.02 and a low of 28,010.66 before concluding at 28,343.01, showing a gain of 440.35, or 1.58 per cent over its last close. The Sensex had closed at 28,370.84 on July 23, 2015.
The NSE Nifty also climbed 136.90 points, or 1.59 per cent, to 8,744.35 after trading between 8,750.60 and 8,642.25.
Elsewhere, Asian stocks ended higher, while European market also opened on a positive note tracking overnight gains in the U.S. market weighed by increased prospects for Federal Reserve rate hike this year.