Sensex up 473 pts on value buying, upsurge in global markets

The BSE Sensex snapped 4-day losing streak today and shot up 473 points to 16,524 - its third biggest single-day gain this fiscal - on value buying amid a surge in global markets and reports that the government plans to cut securities transaction tax.

The rally added about Rs 1,30,000 crore to the investor wealth, as all the 13 sectoral indices closed in the green with realty, IT, refinery, teck, banking and auto counters gaining the most.

Similarly, 29 of the 30 Sensex scrips, barring Cipla, ended with sharp to moderate gains.

After the recent sell-offs, Asian as well as European stocks rallied, after a sharp rise on Wall Street yesterday, on hopes of a bail-out plan by European policymakers to rescue debt-laden Greece.

Besides, brokers said, reports that the government was considering a proposal to abolish or largely reduce the Securities Transaction Tax (STT) to broaden the market participation, boosted the sentiment.

They also attributed the recovery to frenzied short-coverings ahead of the expiry of derivative contracts on Thursday.

The BSE 30-share barometer opened strong and moved upwards to settle at 16,524.03, a net rise of 472.93 points or 2.95 per cent. In the last four trading sessions, it had slumped a massive 1,048.18 points or 6.12 per cent.

Similarly, the 50-issue NSE index Nifty flared 135.85 points or 2.81 per cent to 4,971.25.