New Delhi: It was an extremely good day for the Indian stock markets, which opened with heavy gap up on Thursday on strong global cues. US markets ended higher as the Fed kept the interest rates unchanged at 5.25 per cent. Even the Asian indices closed in green.
Stock markets continued their upward rally for the fourth consecutive day on Thursday as Sensex regained the 13,000-mark with a massive 362 points jump. Nifty closed up 111.35 points at 3,875.9.
"The comeback has been extremely strong. The advance-decline ratio was good, in fact the smallcap index went up last week and this week we have had very strong buying coming in largecaps. One saw the volumes in the calls and the futures and also the global cues have turned positive with US Fed making more optimistic calls than one thought they would,” Investment Advisor PN Vijay was quoted by moneycontrol.com.
The rally was driven by expectations for an upsurge in FII buying, positive impact of strong US markets on IT firms and a sharp recovery in banking stocks.
The US as well as most Asian markets moved higher after the US Federal Reserve decided to keep interest rates unchanged, without indicating any further tightening measures in the near future. This unleashed a buying spree in world markets, brokers said.
All the BSE sectors ended in postive terrain. Leading the rally were banking stocks followed by capital goods and auto. The breadth was extremely positive and on volumes higher than the previous trading sessions. The BSE Bankex was up 4.3% at 6,827.35. Bank of India, PNB, Canara Bank, HDFC Bank, Oriental Bank moved upwards.
Foreign Institutional Investors (FIIs) reportedly covered large chunk of their short positions in derivatives during the day after their heavy inflows of Rs 2,481 crore in the first three days of week. The top heavyweight RIL stole the limelight and scored a 2.55 per cent rise at close.
With inputs from moneycontrol.com
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