The benchmark Sensex on BSE today staged the biggest rally in almost two months to end the day higher close to 540 points on aggressive buying by funds, triggered by the government's bullish forecast on the economy and positive global trends.
The 30-share Sensex on the Bombay Stock Exchange posted a sharp rise of 539.11 points to settle the day at 17,231.11. This is the biggest rally since November 4, when it gained 524 points.
The key index touched the day's the high of 17,252.09 on all-round buying support and all the index stocks ended in the positive terrain.
Wider National Stock Exchange index Nifty also spurted by 158.75 points to close at 5,144.60. It touched the day's high of 5,150.60 points.
Marketmen said there was a sudden spurt in buying across-the-board after finance minister Pranab Mukherjee in New Delhi said that economy would grow 7.5-8%. "The Mid Year Review projected a growth rate of 7.75% (for 2009-'10), but it would be more appropriate to say 7.5 to 8%," he said addressing the 104th annual session of the industry chamber PHDCCI.
He also hinted that fiscal stimulus given to the industry would not be withdrawn before the next Budget.
A sharp rebound in Asian and European stock markets following a strong US data and expectations of a speedy recovery in the US economy further boosted the market sentiment.
Comments