Across-the-board buying on strong global cues and indications of more sops by Finance Minister during the course of debate on Budget in Parliament lifted the BSE benchmark Sensex today by over 265 points -- its biggest gain in this calendar year -- to end at 19,143.17.
Helped by gains in realty, metal and banks, Sensex spurted by 265.21 points, or 1.40 per cent to close at 19,143.17, recording its biggest single day gain since November 29, 2012 when it had soared by nearly 329 points.
Today's stocks rally pushed up investor wealth by Rs 1 lakh crore as 1,679 scrips ended with gains across the market.
Finance Minister P Chidambaram yesterday had assured India Inc that a clutch of decisions, mainly on indirect taxes, would be announced during the course of debate on budget and Finance Bill in Parliament.
Brokers said along with the jump in Asian stocks amid optimism central banks will continue stimulus measures to boost their economies, the Finance Minister's comments triggered off a spate of buying.
All 13 sectoral indices closed with gains between 0.22 pct and 3.13 per cent with interest rates sensitive segments realty, banking and auto taking the lead.
"The FM seems to be in an overdrive mode promising more announcements and steps to revive growth and investment. The undertone remains slightly positive for the coming days," said Amar
Ambani, Head of Research, IIFL.
Bank stocks like ICICI Bank, SBI and HDFC Bank moved up on hopes that RBI will cut interest rates later this month.
Overall, 26 out of 30 Sensex-based scrips closed up.
"Rate-sensitive sectors like Banking and Realty rebounded from lower levels on expectations of probable rate," said Rakesh
Goyal, Senior Vice President, Bonanza Portfolio.
Yesterday's battered metal counters like Hindalco, Tata Steel and Sterlite Industries also notched up smart gains.
RIL jumped 1.69 per cent after Morgan Stanley reportedly upgraded its rating on the stock.
The CNX Nifty of the NSE also flared up by 85.75 points or 1.50 per cent to end at 5,784.25.
Mid-cap and Small-cap stocks, which were under heavy onslaught recently, also were in demand on fresh buying by retail investors.
Globally, Asian stocks closed with gains between 0.10 per cent and 2.33 per cent amid speculation central bankers around the world will continue their stimulus measures and as China maintained its economic-growth target for 2013.
European markets too were trading strong in their early deals. The CAC was up by 1.58 per cent, the DAX by 1.53 per cent and the FTSE by 0.78 per cent.
Back home, major gainers from the Sensex pack were Sterlite Ind (4.47 pc), Hindalco (4.29 pc), Tata Motors (3.73 pc), ICICI Bank (3.36 pc), Wipro (3.30 pc), Cipla (2.95 pc), Maruti Suzuki (2.75 pc), Jindal Steel (2.72 pc), Tata Steel (2.69 pc), L&T (2.13 pc) and Bharti Airtel (2.04 pc).
TCS (1.99 pc), HUL (1.93 pc), Gail India (1.92 pc), RIL (1.69 pc), SBI (1.54 pc), Dr Reddy's Lab (1.47 pc), Tata Power (1.44 pc), M&M (1.39 pc), ONGC (1.30 pc), HDFC Bank (0.81 pc) and Infosys (0.62 pc) also notched up good gains.
However, Bajaj Auto BHEL, ITC and NTPC declined slightly.
Overall, the market capitalisation of BSE listed stocks rose by Rs 96,000 crore to Rs 65.85 lakh
Among the sectoral indices, the S&P BSE-Realty shot up by 3.13 per cent, followed by S&P BSE-Metal (2.65 pc), S&P Bankex (1.89 pc), S&P BSE-Auto (1.78 pc), S&P BSE-Oil&Gas (1.54 pc), S&P BSE-IT (1.50 pc), S&P BSE-CG (1.48 pc), S&P
BSE-Teck (1.45 pc) and S&P BSE-HC (1.37 pc).
"Markets can rally further on the rate cut expectation from RBI governor in forthcoming credit policy. The rate cut can fuel the growth, which is the need of the hour," said Shrikant
Chouhan, Head- Technical Research, Kotak Securities.
The total market breadth turned positive with 1,679 stocks gaining ground against 1,142 finishing with losses.
The total turnover was at Rs 1,787.69 crore.
Meanwhile, Foreign Institutional Investors (FIIs) sold shares worth Rs 30.10 crore yesterday as per provisional data with stock exchanges.
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