- 1,420 stocks gain amid market rally yesterday, Ramkrishna Forgings, Monnet Ispat shares soarBosch shuts Bangalore plant due to employees' tool-down strikeIndian rupee up 31 paise to 62.81 against US dollarBSE Sensex continues to rule firm for 2nd day, rallies over 354 points as banks soar
index (2.52 per cent) and Realty index (2.41 per cent).
BSE Sensex rises most in a month on US Fed, China hopes ITC, HDFC Bank shares soar
(Reuters) BSE Sensex soared more than 2 percent on Monday, to mark its biggest single-day gain in a month, tracking gains in other Asian markets, cheered by the prospect of extended stimulus in the US and real economic reform in China.
World shares hit a near six-year high on Monday, boosted by signs of ambitious economic reform in China and after Janet Yellen, expected to be the next Federal Reserve chief, sounded in no rush to scale back stimulus.
Traders say liquidity would keep sceptics and economic worries aside for the time being. UBS downgraded India to "neutral" while upgrading China to "overweight", saying Plenum reforms will likely cause China to outperform Asia ex-Japan.
Overseas institutional investors are heading towards their third straight month of buying in Indian cash shares, totalling more than $5 billion since August, exchange and regulatory data shows.
"Earnings season had been more of good than bad. We are looking to accumulate good stocks at lower levels as liquidity and global sentiment remains good," said .
The benchmark BSE Sensex rose 2.21 percent, or 451.32 points, to end at 20,850.74, marking its biggest single-day gain since Oct. 18.
The broader NSE Nifty rose 2.19 percent, or 132.85 points, to end at 6,189, closing within 11 points of psychologically important 6,200 level.
Among blue-chip shares, Larsen and Toubro Ltd rose 4.1 percent while Reliance Industries Ltd ended 2.7 percent higher, on improving global risk appetite.
Shares in cigarette maker ITC Ltd surged 3.7 percent on unwinding of short positions in its November futures contracts, dealers said.
Bank stocks gained with bond yields on watch ahead of the Reserve Bank of India's 80 billion rupees bond purchases later in the day.