With strong global cues and rebound in crude oil prices, the BSE benchmark index, Sensex on Friday surged by 401 points to snap three straight weekly losses as investors built fresh long positions in the new derivatives series. Amid a firming global trend after Bank of Japan adopted a negative interest rate policy, the market mood also turned bullish and the NSE Nifty even reclaimed the 7,500-mark to hit a high of 7,575.65 intra-day. On a weekly basis, it also recovered 435.03 points or 1.78 per cent and the NSE Nifty rose 141.10 points or 1.90 per cent to log first weekly gain this year.
Since January 29, 2015 when the BSE Sensex had hit its all-time of 29,681.77, the index has lost over 4,811 points or 16.21 per cent. But experts believe that only strong global cues and rebound in crude oil prices helped recover the market to some extent. “Market welcomed the February series on a firm note led by strong global cues and rebound in crude oil prices. Further, Bank of Japan negative interest rate policy and strong rupee has also cheered the sentiment of the investors,” said Gaurav Jain Director of Hem Securities.
Covering up of positions by speculators, fearing a further run-up in coming sessions, also helped the key indices rise. The 30-stock index after opening in negative zone at 24,347.31 quickly staged a comeback and rallied to hit the session's high of 24,911.90 on across-the-board buying, tracking positive Asian cues and building-up of bets following the beginning of the February derivatives series.
Finally, the gauge settled 401.12 points or 1.64 per cent higher at 24,870.69. The index had shed 22.82 points in the choppy session on Thursday. The NSE Nifty reclaimed the 7,500-mark to end as high as 7,575.65, before closing at 7,563.55, up 138.90 points, or 1.87 per cent.
Top gainers among Sensex constituents included Coal India, Hero MotoCorp, Sun Pharma, Hindustan Unilever, Dr Reddy's and Bajaj Auto. A firming trend at other Asian markets, led by Japan after the Bank of Japan surprised markets by announcing a negative interest rate policy, buoyed sentiment here too.
Shanghai index also rose 3.09 per cent, Hang Seng index settled 2.54 per cent higher, while Japan perked up by 2.80 per cent. Singapore, Taiwan, South Korea also surged by 2.60 per cent, 2.22 per cent and 0.27 per cent, respectively. European indices were also trading higher in their early trade as indices in France, Germany and the UK rose by 1.09 per cent to 1.35 per cent.
Back home, out of the 30-share Sensex pack, 25 scrips ended higher. Buying activity also picked up in the broader markets with the BSE mid-cap rising 2.02 per cent and small-cap gaining 1.07 per cent. Major BSE gainers were Coal India (4.73 pc), Hero MotoCorp (4.67 pc), Sun Pharma (4.60 pc), HUl (3.29 pc), Dr Reddy's (3.21 pc), Bajaj Auto (3.18 pc), Infosys (2.96 pc), ONGC (2.87 pc), M&M (2.62 pc), TCS (2.59 pc), Wipro (2.57 pc), HDFC (2.56 pc), larsen (2.33 pc) and Cipla (1.90 pc).