Ignoring the rupeeís further descent to a fresh record low, the benchmark S&P BSE Sensex on Thursday gained for the first time in five days, surging 407 points on the back of metal shares, which got a boost from encouraging data from China.
The 30-share Sensex opened at 17,896.84, lower than the previous close of 17,905.91, and dropped to a low of 17,759.59. Value buying saw the index recover and touch the dayís high of 18,349.82 before it closed at 18,312.94, a gain of 407.03 points, or 2.27%.
The biggest gain for the index in almost two months helped investors become richer by R1.17 lakh crore. The index had gained 519.86 points on June 28.
Brokers said the rally was backed by metal stocks after a manufacturing index in China, the biggest consumer of metals, increased in August from an 11-month low. They said higher openings in the European stock markets as manufacturing in Germany expanded at a faster-than-expected pace also influenced the Indian market sentiment.
The Nifty index on the National Stock Exchange surged by 105.90 points, or 2%, to 5,408.45. The SX40 index on the MCX-SX added 199.44 points to 10,817.88.
Hindalco led Sensex shares higher with a 10.93% gain, followed by Sterlite Industries, Tata Steel and Oil & Natural Gas Corporation. The metals sectoral index climbed 8.23%. ITC, Reliance Industries, ONGC and TCS contributed a combined 184.46 points to the gains in the Sensex, which tumbled on Wednesday to the lowest level in more than 11 months.
Asian stocks ended lower after minutes of the Federal Reserveís last meeting signalled the US central bank was on course to pare bond purchases this year. Key indices in China, Japan, Singapore, South Korea and Taiwan declined, while the index in Hong Kong moved up. Indices in France, Germany and UK rose.
The market breadth turned positive as 1,280 shares ended with gains, 985 finished with losses and 139 ruled steady. Total turnover rose further to Rs 2,323.03 crore from R2,261.40 crore on Wednesday.