Amid Government’s strong reform push and robust global cues, investors’ buying spree helped Dalal Street stage a strong rally across the board, soaring Sensex by 576 points - the biggest single-day gain in nearly 3 months, while the Nifty surged by 186 points above 7,900 at the close on Wednesday.
Besides, encouraging quarterly results and expectations of a good monsoon this year also made investors bolder. The Union Cabinet also approved the first-ever policy for the country’s capital goods sector envisaging creation of over 21 million new jobs by 2025.
The Sensex opened strong at 25,432.10 and continued to rise to hit the day’s high of 25,897.87. Finally, it settled at 1-month high of 25,881.17, a gain of 575.70 points, or 2.28 per cent. The 50-share NSE Nifty recaptured the 7,900-mark to hit a high of 7,941.20 before winding up at 7,934.90, a hefty rise of 186.05 points, or 2.40 per cent.
Financials led the powerful rally followed by capital goods, technology, power, energy, realty and auto. Covering-up of pending short positions by traders ahead of the F&O expiry in the derivatives segment on Thursday predominantly supported the upside even better-than-expected Q4 earnings result, too, weighed on trade.
Elsewhere in the region, barring China, most Asian markets closed on a firm note following strong Wall Street close overnight. Hong Kong led the rally, surging 2.71 per cent, followed by Japan 1.57 per cent, South Korea 1.18 per cent, Taiwan 1.15 per cent and Singapore 0.60 per cent. Meanwhile, European bourses are also trading firmly higher, with DAX up 1.30 per cent, CAC 1.02 per cent and FTSE 0.65 per cent.