Sensex Vaults 1,131 Pts As Global Markets Rally

The anticipated rebound in domestic earnings, along with a recent decline in the dollar index and lower crude prices, is expected to support this recovery -Vinod Nair, Head (Research), Geojit Financial Services

Mumbai: The BSE benchmark index Sensex jumped 1,131 points to revisit the 75,000 level on Tuesday, and the NSE Nifty surged 1.45 per cent, tracking a bullish trend in global equities and intense buying in market majors ICICI Bank, L&T and M&M counters. Besides, lower crude oil prices in the international markets and a weak dollar against major currencies overseas also bolstered sentiment, traders said.

Rising for the second day on the trot, the 30-share BSE Sensex jumped 1,131.31 points or 1.53 per cent to settle at 75,301.26. During the day, it soared 1,215.81 points or 1.63 per cent to 75,385.76.

“Buoyancy across global equities boosted the confidence of local investors, which translated into value buying across the sectors. As markets were in a bearish mode over the past few weeks and valuations had become a bit attractive, investors seized opportunity in the beaten-down sectors. But the recovery would be difficult to hold on due to global challenges,” said Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd. The BSE small-cap gauge soared 2.73 per cent, and the midcap index jumped 2.10 per cent.

As many as 2,815 stocks advanced, while 1,221 declined and 123 remained unchanged on the BSE. The NSE Nifty surged 325.55 points or 1.45 per cent to 22,834.30. The benchmarks witnessed a strong recovery, driven by favourable global trends and domestic tailwinds. Improved retail sales data from the US and China boosted investor confidence, while mid and small-cap stocks outperformed.